Recently, U.S. Department of Commerce reported that U.S. retail sales (excluding automobiles, gasoline, building materials and food services) increased 0.6% (on monthly basis) in November which exceeded Wall Street’s expectations for a 0.4% gain, pointing to firm economic recovery. It also suggests that consumer spending (closely related to retail sales) is accelerating in the fourth quarter of 2014.
Today, we have shortlisted 14 U.S retail stocks that are expected to report strong sales growth and decent operating profit margins for their current fiscal year end. Moreover, during the past one month, majority of the stocks have registered price gains with daily average trading volumes in excess of 100,000.
| Company Name |
Ticker |
Exchange |
Market Cap |
Last Price |
Average Volume |
Price Change (1-Month) |
Current Fiscal Year Sales Growth (E) |
Current Fiscal Year Operating Profit Margin (E) |
|
First Cash Financial Services Inc* |
FCFS |
NASDAQ |
1,525.7 |
53.90 |
135,763 |
-6.8% |
8.8% |
18.4% |
|
Francesca’s Holdings Corp |
FRAN |
NASDAQ |
674.2 |
15.94 |
1,306,645 |
34.2% |
8.6% |
14.7% |
|
Zumiez Inc |
ZUMZ |
NASDAQ |
1,071.4 |
36.66 |
260,856 |
3.3% |
11.2% |
9.5% |
|
Vitamin Shoppe Inc* |
VSI |
NYSE |
1,434.5 |
46.46 |
514,010 |
-3.1% |
12.1% |
9.1% |
|
Restoration Hardware Holdings Inc |
RH |
NYSE |
3,759.8 |
95.00 |
990,748 |
14.8% |
20.4% |
9.1% |
|
Conn’s Inc |
CONN |
NASDAQ |
572.8 |
15.78 |
1,298,725 |
-50.0% |
24.2% |
9.0% |
|
Tile Shop Holdings Inc* |
TTS |
NASDAQ |
453.1 |
8.83 |
523,528 |
4.1% |
12.5% |
8.8% |
|
Cato Corp/The |
CATO |
NYSE |
1,138.2 |
40.78 |
186,069 |
8.3% |
7.1% |
8.6% |
|
Men’s Wearhouse Inc/The |
MW |
NYSE |
1,961.1 |
40.77 |
781,470 |
-12.6% |
32.6% |
7.8% |
|
Finish Line Inc/The |
FINL |
NASDAQ |
1,359.6 |
28.43 |
593,182 |
1.4% |
9.5% |
7.5% |
|
Genesco Inc |
GCO |
NYSE |
1,738.2 |
72.19 |
168,720 |
-9.5% |
8.1% |
6.5% |
|
Container Store Group Inc/The |
TCS |
NYSE |
870.8 |
18.15 |
366,788 |
-22.5% |
7.4% |
6.4% |
|
Kirkland’s Inc |
KIRK |
NASDAQ |
391.6 |
22.84 |
123,807 |
19.7% |
9.2% |
5.4% |
|
Burlington Stores Inc |
BURL |
NYSE |
3,475.1 |
46.59 |
720,832 |
10.1% |
7.2% |
5.2% |
Source: Bloomberg
*Companies with fiscal year as 2014 (rest all are of 2015).
Company Description
First Cash Financial Services Inc (NASDAQ: FCFS)
First Cash Financial Services, Inc. operates pawn stores. The company’s stores lend money on the collateral of pledged personal property, and retail previously-owned merchandise acquired through loan forfeitures. First Cash also operates check cashing stores and provides software to third-party operators in the check cashing industry.
Francesca’s Holdings Corp (NASDAQ: FRAN)
Francesca’s Holdings Corporation operates as a holding company. The company, through its subsidiary, retails women’s apparel products that cater to the 18-35 year-old fashion conscious, female customers. Fracesca’s offers apparel, jewelry, accessories, and gifts.
Zumiez Inc (NASDAQ: ZUMZ)
Zumiez Inc., is a specialty retailer of action sports related apparel, footwear, equipment, and accessories.
Vitamin Shoppe Inc (NYSE: VSI)
Vitamin Shoppe, Inc., sells vitamins, minerals, herbs, supplements, sports nutrition and health and wellness products. The company sells their products through their retail shops, internet and catalog operations.
Restoration Hardware Holdings Inc (NYSE: RH)
Restoration Hardware Holdings Inc. offers home furnishings. The company offers products that include furniture, lighting, textiles, bathware, decor, outdoor and garden, as well as baby and child products. Restoration Hardware’s business is fully integrated across multiple channels of distribution, consisting of retail stores, catalogs and websites.
Conn’s Inc (NASDAQ: CONN)
Conn’s, Inc. is a specialty retailer of home appliances and consumer electronics through stores in Texas and Louisiana, and via its website. Conn’s also offers home office equipment, lawn and garden products, and other home products such as bedding.
Tile Shop Holdings Inc (NASDAQ: TTS)
The Tile Shop Holdings, Inc. is a specialty retailer of manufactured and natural stone tiles, setting and maintenance materials, and related accessories in the United States.
Cato Corp/The (NYSE: CATO)
The Cato Corporation and its subsidiaries operate and manage stores in the United States. The stores, under the names Cato, Cato Fashions, Cato Plus, and It’s Fashion!, feature women’s apparel and accessories for juniors, misses, and large sizes. The company’s apparel includes dresses, careerware, coats, hosiery, shoes, handbags, and other related items.
Men’s Wearhouse Inc/The (NYSE: MW)
The Men’s Wearhouse, Inc. retails specialty apparel. The company provides suits, suit separates, sport coats, slacks, sportswear, outerwear, dress shirts, shoes, and accessories for men, as well as offers tuxedo rentals. The Men’s Wearhouse conducts business throughout the United States and Canada.
Finish Line Inc/The (NASDAQ: FINL)
The Finish Line, Inc. is a specialty retailer of men’s, women’s and children’s brand name athletic and leisure footwear, activewear, and accessories. Brand names carried by The company include Nike, Reebok, K-Swiss, And 1, Asics, adidas, Timberland, New Balance, Saucony, Skechers, and Converse.
Genesco Inc (NYSE: GCO)
Genesco Inc. retails branded footwear, licensed and branded headwear, and wholesales branded footwear. The company operates stores throughout the United States, Puerto Rico, and Canada.
Container Store Group Inc/The (NYSE: TCS)
The Container Store Group, Inc. operates specialty retail stores. The company offers storage, organizational products and solutions. The Container Store Group owns and operates its retail stores throughout the United States.
Kirkland’s Inc (NASDAQ: KIRK)
Kirkland’s, Inc. retails home accessories and gifts. The company’s stores sell a variety of products, including framed art, candles, lamps, picture frames, rugs, garden accessories, artificial plants, and holiday merchandise. Kirkland’s operates in the United States.
Burlington Stores Inc (NYSE: BURL)
Burlington Stores, Inc. owns and operates clothing retail stores. The company offers, through its stores and internet sites, men’s, women’s, and children’s apparel. Burlington Holding operates within the United States and Puerto Rico.
