Jobless claims (a leading economic indicator) in the U.S. fell in 2014 to lowest in 14 years. An average 308,500 workers a week filed jobless claims this year, the least since 2000, according to figures from the Labor Department in Washington. The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, rose only 250 to 290,750 last week. It has remained below the 300,000 mark for 16 straight weeks. A strengthening labor market should lead to faster economic growth, with increasingly confident and better-paid workers spending more.
As consumer spending is closely related to retail sales, today we have shortlisted 10 U.S retail stocks that would benefit from increase in consumer spending and are expected to report strong sales growth (>10%) and decent operating margins (>10%) during the period Q4’ FY2015 ending 31-Jan-2015. Moreover, during the past one month, all 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) |
Sales Growth |
Operating Margin Q4′ FY15E |
|
Kirkland’s Inc |
KIRK |
NASDAQ |
405.3 |
23.64 |
145,934 |
12.0% |
52.3% |
13.7% |
|
Stage Stores Inc |
SSI |
NYSE |
654.7 |
20.70 |
504,377 |
3.9% |
40.1% |
12.9% |
|
Abercrombie & Fitch Co |
ANF |
NYSE |
1,985.8 |
28.64 |
2,868,908 |
2.9% |
28.5% |
11.9% |
|
Burlington Stores Inc |
BURL |
NYSE |
3,525.1 |
47.26 |
790,524 |
7.7% |
26.2% |
11.9% |
|
Urban Outfitters Inc |
URBN |
NASDAQ |
4,624.6 |
35.13 |
3,072,695 |
13.0% |
20.9% |
11.9% |
|
Restoration Hardware Holdings Inc |
RH |
NYSE |
3,799.8 |
96.01 |
1,119,335 |
14.1% |
20.9% |
12.4% |
|
Buckle Inc/The |
BKE |
NYSE |
2,540.9 |
52.52 |
241,718 |
5.9% |
19.9% |
26.5% |
|
Zumiez Inc |
ZUMZ |
NASDAQ |
1,128.9 |
38.63 |
258,786 |
9.6% |
19.6% |
13.5% |
|
Francesca’s Holdings Corp |
FRAN |
NASDAQ |
706.4 |
16.70 |
1,310,960 |
38.4% |
14.7% |
12.3% |
|
Pier 1 Imports Inc* |
PIR |
NYSE |
1,409.1 |
15.40 |
2,348,058 |
13.6% |
14.0% |
15.2% |
Source: Bloomberg
* Q4’FY15 ends on 28-Feb-2015
Company Description
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.
Stage Stores Inc (NYSE: SSI)
Stage Stores, Inc. operates retail stores throughout the United States. The company’s stores sells products that include apparel, accessories, cosmetics, and footwear for the entire family.
Abercrombie & Fitch Co (NYSE: ANF)
Abercrombie & Fitch Co. a specialty retailer that operates stores and direct-to-consumer operations. Through these channels, the Company sells: casual sportswear apparel, including knit and woven shirts, graphic t-shirts, fleece, jeans and woven pants, shorts, sweaters, and outerwear; personal care products; and accessories for men, women and kids.
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.
Urban Outfitters Inc (NASDAQ: URBN)
Urban Outfitters, Inc. operates retail stores and direct response, including a catalog and Web sites. The company’s Urban Outfitters and Anthropologie retail concepts sell fashion apparel, accessories, and household and gift merchandise. Urban also designs and markets young women’s casual wear which it provides to The company’s retail operations and sells to retailers worldwide.
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.
Buckle Inc/The (NYSE: BKE)
The Buckle, Inc. retails medium to better priced casual apparel for young men and women. The Company currently operates retail stores in the United States under the Brass Buckle and The Buckle names. The Buckle markets a wide selection of mostly brand name casual apparel, including denims, tops, sportswear, outerwear, accessories, and shoes.
Zumiez Inc (NASDAQ: ZUMZ)
Zumiez Inc., is a specialty retailer of action sports related apparel, footwear, equipment, and accessories.
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.
Pier 1 Imports Inc (NYSE: PIR)
Pier 1 Imports, Inc. retails decorative home furnishings, gifts, and related items. Pier 1 stores are located in the United States, Puerto Rico, Canada, the United Kingdom, and Mexico.
