Hot Retail Stocks For 2015

Many investors may not consider web browsers as a big revenue driver, and for good reason — companies give them away for free. But some tech companies can — and do — make money some from their free browsers. But as mobile has taken off, some of the old ways of doing things are being challenged by new competitors. 

Browsing for profits
Chinese tech companies with mobile browsers — like UCWeb and Tencent — make some of their mobile profits through revenue-sharing deals e-commerce sites. UCWeb CEO YongFu Yu recently wrote in an AllThingsD article that Chinese mobile users find advertising “disruptive and invasive” and said that his company’s browser is more of a service platform for users rather than an entry point to the Internet. His conclusion was that U.S. companies should look to the Chinese model of monetizing mobile browsers.

UCWeb Browser. Source: UCWeb. 

Though Yu seems positive about the Chinese approach to mobile browsers, U.S. companies do actually make money from their browsers as well, both in mobile and desktop.

Hot Retail Stocks For 2015: Zale Corp (ZLC)

Zale Corporation, incorporated on April 26, 1991, through its wholly owned subsidiaries, is a retailer of fine jewelry in North America. The Company operates in three segments: fine jewelry, kiosk jewelry and all other. As of July 31, 2012, the Company operated 1,124 specialty retail jewelry stores and 654 kiosks located mainly in shopping malls throughout the United States, Canada and Puerto Rico. The Company’s fine jewelry segment consists of five brands: Zales Jewelers, Peoples Jewellers, Zales Outlet, Mappins Jewellers, and Gordon’s Jewelers The Company’s kiosk jewelry operates under the brand names Piercing Pagoda, Plumb Gold, and Silver and Gold Connection (collectively, Piercing Pagoda) through mall-based kiosks. The Company provides insurance and reinsurance services for various types of insurance coverage, which is marketed primarily to its private label credit card guests, through Zale Indemnity Company, Zale Life Insurance Company and Jewel Re-Insurance Ltd.

Fine Jewelry

Each brand specializes in fine jewelry and watches, with merchandise and marketing emphasis focused on diamond products. Zales Jewelers is the Company’s national brand in the United States providing moderately priced jewelry to a range of guests. Zales Outlet operates in outlet malls and neighborhood power centers and capitalizes on Zales Jewelers’ national advertising and brand recognition. Gordon’s Jewelers is a value-oriented regional jeweler. Peoples Jewellers, Canada’s fine jewelry retailer, provides guests with shopping experience. Mappins Jewellers offers Canadian guests a selection of merchandise from engagement rings to fashionable and contemporary fine jewelry.

The Company has extended its reach of certain brands through the use of its Webstores, mobile devices and social media to provide its guests access to its brands wherever and whenever they choose. In addition, the Company offers its guests the option to p urchase warranty coverage on substantially all of its mercha! ndise in Fine Jewelry. The Company also offers repair services to guests who do not purchase warranty coverage. Zales Jewelers (Zales), the Company’s United States based flagship, is a brand name in jewelry retailing in the United States, operating 639 stores in 50 states and Puerto Rico with an average store size of 1,681 square feet. Gordon’s Jewelers (Gordon’s) operates 147 stores in 27 states and Puerto Rico with an average store size of 1,534 square feet.

The Company’s Zales brand is positioned as the Diamond Store emphasizing on diamond jewelry, especially in the bridal and fashion segments. Zales and Gordon’s combined revenues accounted for 60% of the Company’s total revenues during the fiscal year ended July 31, 2012 (fiscal 2012). Both brands operate as multi-channel retailers and serve Internet guests through the e-commerce sites www.zales.com and www.gordonsjewelers.com, which accounted for approximately 5% of the Company’s total revenues in fiscal 2012.

In Canada, the Company operates 206stores in nine provinces. The Company’s Canadian operations consist of two brands, Peoples Jewellers (Peoples) and Mappins Jewellers (Mappins), and accounted for 17% of the Company’s total revenues in fiscal 2012. The average store size is 1,605 square feet with an average transaction value of $332 in fiscal year 2012. Peoples serves Internet guests through the e-commerce site, www.peoplesjewellers.com. The Company operates 132 Zales Outlet (Outlet) stores in 35 states and Puerto Rico, sales from which accounted for 10% of its total revenues in fiscal 2012. The average store size is 2,362 square feet in fiscal 2012.

Kiosk Jewelry

The Company’s kiosk jewelry segment is focused on the opening price point jewelry guest. The Company’s presence in Kiosk Jewelry has been expanded through the e-commerce site, www.pagoda.com. The Company also offers its guests the option to purchase warranty coverage on certain products. As of July 31, 2012, Piercing Pagoda op! erated 65! 4 locations in 41 states and Puerto Rico, sales from which accounted for 13% of the Company’s total revenues in fiscal. Piercing Pagoda offers collection of bracelets, earrings, charms, rings, non-precious metal products and 14 karat and 10 karat gold chains, as well as a selection of silver and diamond jewelry, all in basic styles at moderate prices. Kiosk locations average 188 square feet in size in fiscal 2012.

All Other

The Company insurance companies are the insurers (either through direct written or reinsurance contracts) of the Company’s guests’ credit insurance coverage. In addition to providing merchandise replacement coverage for certain perils, credit insurance coverage provides protection to the creditor and cardholder for losses associated with the disability, involuntary unemployment, leave of absence or death of the cardholder. Zale Life Insurance Company also provides group life insurance coverage for the Company’s eligible employees . In fiscal year 2012, 36% of the Company’s private label credit card purchasers purchased some form of credit insurance. In fiscal year 2012, all other accounted for approximately 1% of the Company’s total revenues.

The Company competes with Wal-Mart Stores, Inc., .C. Penney Company, Inc., Signet Jewelers Limited, and QVC, Inc.

Advisors’ Opinion:

  • [By John Kell]

    Among the companies with shares expected to actively trade in Wednesday’s session are Zale Corp.(ZLC), Herbalife Ltd.(HLF) and Devon Energy Corp.(DVN)

  • [By Jake L’Ecuyer]

    Top Headline
    Signet Jewelers (NYSE: SIG) announced its plans to buy Zale (NYSE: ZLC) for around $690 million. Signet will pay $21 per share to acquire Zale, representing a 41% premium to Zale’s closing price of $14.91 on Tuesday.

Hot Retail Stocks For 2015: O’Reilly Automotive Inc.(ORLY)

O?Reilly Automotive, Inc., together with its subsidiaries, engages in the retail of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. The company?s stores provide new and remanufactured automotive hard parts, including alternators, starters, fuel pumps, water pumps, brake system components, batteries, belts, hoses, chassis parts, and engine parts; maintenance items comprising oil, antifreeze, fluids, filters, wiper blades, lighting, engine additives, and appearance products; and accessories, such as floor mats, seat covers, and truck accessories. Its stores also offer auto body paint and related materials, automotive tools, and professional service provider service equipment. The company?s stores sell its brand name and private label products for domestic and imported automobiles, vans, and trucks to do-it-yourself customers and professional service providers. As of March 31, 2011, it operated 3,613 stores. The company was foun ded in 1957 and is headquartered in Springfield, Missouri.

Advisors’ Opinion:

  • [By Ben Levisohn]

    Shares of AutoZone have fallen 1.7% to $531.87 at 11:52 a.m., while Advance Auto Part (AAP) has dropped 1.6% to $121.27 and O’Reilly Automotive (ORLY) has declined 0.9% to $147.25. Pep Boys (PBY), however, has bucked the selling–its shares have gained 1.9% to $10.57.

  • [By Peter Graham]

    The fiscal Q3 2014 earnings report for auto parts retailer stock AutoZone, Inc (NYSE: AZO), a peer of Advance Auto Parts, Inc (NYSE: AAP), O’Reilly Automotive Inc (NASDAQ: ORLY) and The Pep Boys – Manny, Moe & Jack (NYSE: PBY), is scheduled for before the market opens on Tuesday. Aside from the AutoZone earnings report, it should be said that Advance Auto Parts, Inc reported Q1 2014 earnings on May 15th (results were better than expected and they upped guidance); O’Reilly Automotive Inc reported Q1 2014 earnings on April 24th (results topped expectations); and The Pep Boys reported Q4 2013 earnings on April 15th and will report Q1 2014 earnings on June 10th (PBY reported a surprise loss as tire pricing negatively hit revenue). However and given the current uncertain economy that is keeping most consumers in their old cars, you would think that auto parts retailers in general would all be doing well.

  • [By James E. Brumley]

    O’Reilly Automotive Inc. (NASDAQ:ORLY), AutoZone, Inc. (NYSE:AZO), The Pep Boys – Manny, Moe & Jack (NYSE:PBY), and Advance Auto Parts, Inc. (NYSE:AAP) may all technically be in the same business, but they’re hardly in the same proverbial boat. In fact, their performances – sales and earnings – are oddly disparate. Which among PBY, AZO, ORLY, and AAP are the winners and the losers, and perhaps more important, why? The question can at least partially be answered by a chart, and what the chart can’t tell us about each, the narrative can.

    O’Reilly Automotive

Hot Retail Stocks For 2015: ANN Inc (ANN)

ANN INC., incorporated in 1988, through its wholly owned subsidiaries, is a specialty retailer of women’s apparel, shoes and accessories sold primarily under the Ann Taylor and LOFT brands. The Company’s Ann Taylor and LOFT brands offers a range of career and casual separates, dresses, tops, weekend wear, shoes and accessories. It offers updated past season sellers from the Ann Taylor and LOFT merchandise collections at its Ann Taylor Factory and LOFT Outlet stores, respectively, and the clients can also shop online at www.anntaylor.com and www.LOFT.com (together, Online Stores), or by phone at 1-800-DIAL-ANN and 1-888-LOFT-444. As of January 28, 2012, it operated 953 retail stores in 46 states, the District of Columbia and Puerto Rico, consisted of 280 Ann Taylor stores, 500 LOFT stores, 99 Ann Taylor Factory stores and 74 LOFT Outlet stores.

Substantially all of the Company’s merchandise is developed by its in-house product design and development teams , who design merchandise exclusively for the Company. A small percentage of its merchandise is purchased through branded vendors, which is selected to complement its in-house assortment. The Company sourced merchandise from approximately 138 manufacturers and vendors in 19 countries. Approximately 42% of its merchandise unit purchases originated in China, 13% in the Philippines, 14% in Indonesia, 14% in India, and 13% in Vietnam. The Company’s wholly owned subsidiary, AnnTaylor Distribution Services, Inc., owns its 256,000-square-foot distribution center located in Louisville, Kentucky. The distribution center is located on approximately 27 acres. Its merchandise is distributed to stores, including the Online Stores, through this facility.

An average Ann Taylor store is approximately 5,500 square feet in size. The Company operates two Ann Taylor flagship stores, one located in New York City and one located in Chicago. LOFT stores average approximately 5,800 sq uare feet. The Company also operates one LOFT flagship store! on the ground floor of 7 Times Square, its corporate headquarters, in New York City. During the fiscal year ended January 28, 2012 (fiscal 2011), it opened 14 LOFT stores that averaged approximately 5,500 square feet. Ann Taylor Factory stores average approximately 7,100 square feet. LOFT Outlet stores average approximately 7,000 square feet. During fiscal 2011, its LOFT Outlet stores were 38 new stores that averaged approximately 7,600 square feet.

Advisors’ Opinion:

  • [By jaggom]

    ANN (ANN), with its strong quarterly results, indicates that the company is making a comeback. Despite headwinds in the retail apparel market and competition, ANN emerged as a winner by reporting strong quarterly results. ANN has outperformed in the past and is continually working on improving market share. The company looks positioned for a comeback and could be a good long-term holding as its recent results suggest.

  • [By Jayson Derrick]

    Analysts at Macquarie upgraded ANN (NYSE: ANN) to Outperform from Neutral. Shares gained 0.45 percent, closing at $42.04.

    Analysts at JPMorgan upgraded Anadarko Petroleum (NYSE: APC) to Overweight from Underweight with a price target raised to $129 from a previous $84. Analysts at Citigroup maintained a Hold rating on Anadarko with a price target raised to $112 from a previous $97. Shares hit new 52 week highs of $103.50 before closing the day at $101.03, up 2.03 percent.

  • [By Laura Brodbeck]

    Notable earnings released on Friday included:

    Brown Shoe Company (NYSE: BWS) reported fourth quarter EPS of $0.14 on revenue of $600.00 million, compared to last year’s EPS of $0.14 on revenue of $640.18 million. ANN INC (NYSE: ANN) reported fourth quarter EPS of $0.10 on revenue of $623.30 million, compared to last year’s EPS of $0.05 on revenue of $607.68 million. Buckle, Inc (NYSE: BKE) reported fourth quarter EPS of $1.23 on revenue of $339.00 million, compared to last year’s EPS of $1.28 on revenue of $360.62 million.

    Pre-Market Movers

  • [By Jake L’Ecuyer]

    Top Headline
    Ann (NYSE: ANN) reported a rise in its fourth-quarter earnings and issued a downbeat forecast for the year. The company also announced its plans to lower about 100 jobs. Ann’s quarterly earnings surged to $4.7 million, or $0.10 per share, from $2.4 million, or $0.05 per share, in the year-ago period. Its revenue climbed 3% to $623.3 million versus $607.7 million. However, analysts were estimating earnings of $0.07 per share on revenue of $624 million.

Hot Retail Stocks For 2015: Dollar Tree Inc.(DLTR)

Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.

Advisors’ Opinion:

  • [By Steven Russolillo]

    WATCH FOR: Weekly Jobless Claims (8:30 a.m. Eastern Time): seen 310K; previously 297K. May Markit “Flash” PMI (9:45). April Existing Home Sales (10:00): seen +2.0% at 2.68M; previously -0.2% at 4.59M. April Leading Index (10:00): seen +0.5%; previously +0.8%. May Kansas City Fed Manufacturing Survey (11:00): seen 8; previously 7. Aeropostale, Best Buy(BBY), Borcade, Buckle, Dollar Tree(DLTR), GameStop(GME), Gap(GPS), Hewlett-Packard(HPQ), Marvell Tech(MRVL), Mentor Graphics(MENT), Ross Stores(ROST) and TiVo are among companies scheduled to report quarterly results.

  • [By Richard Stavros]

    For example, Dollar General (NYSE: DG), the nation’s largest dollar-store chain with 11,100 locations, offered a weak profit outlook in the early part of the year after reporting weak fourth-quarter sales. And Dollar Tree (Nasdaq: DLTR), which operates about 5,000 locations, missed profit expectations for the holiday quarter in February. What has happened to the American consumer? Even McDonald’s sales were flat in April.

  • [By Lawrence Meyers]

    This isn’t some growing new industry set to take the world further into the 21st century. It’s an old concept that hasn’t innovated, won’t innovate, and will slowly but surely die out over this century. When I walk into a Walgreens, I see a miniature Target (TGT), a more expensive Dollar Tree (DLTR), and a provider of prescriptions in a world where everything is becoming mail order.

  • [By Paul Ausick]

    The other stock the firm likes is Dollar Tree Inc. (NASDAQ: DLTR). The company’s shares have lost about 4.6% since reporting an earnings per share (EPS) miss for the third quarter and the Sterne Agee analysts see the lower price as a “great entry point” for buying the stock. Dollar Tree raised fiscal year 2013 EPS guidance from a range of $2.66 to $2.77 to a new range of $2.72 to $2.78, effectively raising the mid-point by $0.04. Sterne Agee reiterated its Buy rating on the stock with a price target of $63. Dollar Tree’s shares are trading down nearly 0.4% at $55.99 in a 52-week range of $37.47 to $60.19.

Hot Retail Stocks For 2015: Dollar General Corporation(DG)

Dollar General Corporation operates as a discount retailer of general merchandise in the southern, southwestern, midwestern, and eastern United States. The company offers consumables, including paper towels, bath tissue, paper dinnerware, trash and storage bags, laundry, and other home cleaning supplies; packaged food and perishables; beverages and snacks, such as candies, cookies, crackers, salty snacks, and carbonated beverages; over-the-counter medicines and personal care products; and pet supplies and pet food products. It also provides seasonal products consisting of decorations, toys, batteries, small electronics, greeting cards, stationery, prepaid cell phones and accessories, gardening supplies, hardware, and automotive and home office supplies; home products comprising kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, craft supplies, and bed and bath soft goods; and apparel products, such as casual everyday apparel for infants, toddlers, girls, boys, women and men, as well as offers socks, underwear, disposable diapers, shoes, and accessories. In addition, the company holds a license to Bobbie Brooks clothing, as well as the Fisher Price brand for various items of children’s clothing. As of May 25, 2011, it operates approximately 9,500 stores in 35 states. The company was formerly known as J.L. Turner & Son, Inc. and changed its name to Dollar General Corporation in 1968. Dollar General Corporation was founded in 1939 and is based in Goodlettsville, Tennessee.

Advisors’ Opinion:

  • [By Richard Stavros]

    For example, Dollar General (NYSE: DG), the nation’s largest dollar-store chain with 11,100 locations, offered a weak profit outlook in the early part of the year after reporting weak fourth-quarter sales. And Dollar Tree (Nasdaq: DLTR), which operates about 5,000 locations, missed profit expectations for the holiday quarter in February. What has happened to the American consumer? Even McDonald’s sales were flat in April.

  • [By Renu Singh]

    Costco’s (NASDAQ: COST  ) performance this year has been patchy with shares down 5%. The company’s second-quarter numbers slightly missed consensus expectations as heavy discounting during the holiday period ate into its margins. Weak sales, deflation in gas prices, and forex fluctuations also affected its second-quarter results. Moreover, with competition rising from big box retailers such as Wal-Mart (NYSE: WMT  ) and competitive pricing from dollar stores such as Dollar General (NYSE: DG  ) , is the membership warehouse retailer in for troubled times ahead?

Hot Retail Stocks For 2015: Shoe Carnival Inc (SCVL)

Shoe Carnival, Inc. is a family footwear retailer. The Company offers customers an assortment of dress, casual and athletic footwear for men, women and children with emphasis on national and regional name brands. The Company’s stores averaged approximately 10,800 square feet, ranging in size from 6,000 to 26,500 square feet. As of January 28, 2012, the Company operated 327 stores located across 32 states and offered online shopping at www.shoecarnival.com. Its average store carries approximately 28,500 pairs of shoes in four general categories, such as men’s, women’s, children’s and athletics. In addition to footwear, its stores carry selected accessory items complementary to the sale of footwear.

The Company operates a single 410,000 square foot distribution center located in Evansville, Indiana. Women’s, men’s and children’s non-athletic footwear categories are further divided into dress, casual, sport, sandals and boots. It classifies athletic shoes by functionality, such as running, basketball or fitness shoes. During the fiscal year ended January 28, 2012 (fiscal 2011), athletic styles, including children’s sizes, have represented approximately 50% of its footwear sales.

Advisors’ Opinion:

  • [By Maria Armental and Tess Stynes var popups = dojo.query(“.socialByline .popC”); ]

    Shoe Carnival Inc.(SCVL) sales were hurt by harsh winter weather conditions and weak traffic, as the company reported a 4% earnings drop for the first quarter. The Indiana footwear and accessories chain’s results missed expectations, and the company issued a weaker projection for the current quarter.

  • [By DailyFinance Staff]

    Job creation last month was shockingly weak, but analysts couldn’t really explain why –- other than to blame the weather — which left investors unsure how to react Friday. Many analysts say the numbers are likely to be revised higher next month, and in the end, market reaction was muted. The Dow Jones industrial average (^DJI) lost ground for a third straight day, declining nearly 8 points, but the Standard & Poor’s 500 index (^GPSC) added 4, and the Nasdaq composite index (^IXIC) rose 18 points. Target (TGT) lost more than a point after saying the data breach that began on Black Friday was much worse than previously thought. The company now says as many as 70 million customers had personal information stolen. Target also lowered its fourth quarter outlook, partly because sales slumped after the data breach was first revealed. Sears (SHLD) tumbled by around 13.5 percent. It expects a big quarterly loss as sales fell during the holiday shopping season. Several smaller, specialty retailers also fell: Pacific Sunwear (PSUN) slid 16 percent, Five Below (FIVE) fell 7 percent, Shoe Carnival (SCVL) lost 5 percent, and Conn’s (CONN) lost 2 percent. But Abercrombie & Fitch (ANF) jumped 12 percent. It raised its earnings forecast as sales were not as bad as expected. Elsewhere, Alcoa (AA) fell about 5.5 percent. It’s not quite the economic bellwether it used to be, but the aluminum giant still matters, and its net came in a bit shy of expectations. YRC Worldwide (YRCW) tumbled 13 percent after workers rejected a contract offer. That has raised fears the trucking company could be forced into bankruptcy. On the upside, the weak jobs report could keep mortgage rates from rising, and that boosted housing stocks. KB Homes (KBH) rose 3 percent, William Lyons up 4 percent, and Lennar (LEN) was up 2 percent. And on Thursday we reported that shares of Intercept Pharmaceuticals nearly quadrupled in price on news of a positive clinical study for its liver dr

  • [By Lauren Pollock]

    Shoe Carnival Inc.’s(SCVL) fiscal third-quarter earnings slid 11%, with revenue declining due to an unfavorable calendar shift from the previous year.

  • [By Sue Chang]

    Shoe Carnival (SCVL)  is forecast to post earnings of 52 cents a share in the third quarter.