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Sector Watch: Numerous Billionaires Hold Apparel on 52-week Low

October 19, 2013 | About:
Sally Jones

Sally Jones

49 followers
A high number of billionaire investors hold today’s featured apparel companies including American Eagle Outfitters (AEO), Urban Outfitters (URBN) and Body Central Corp. (BODY), as revealed by the GuruFocus 52-week low screener.

The three companies selected are popular youth-oriented or lifestyle brands. They are highlighted to show numerous billionaire investors, signifying possible deep value as the companies navigate through a 52-week low.

Sector Watch: Retail – Apparel & Specialty

The apparel and specialty retail sector in the U.S. currently has 22 out of 180 companies on a 52-week low. The sector low ratio is 0.12.

Highlight: American Eagle Outfitters (AEO)

The AEO share price is currently $14.19 or 38.2% off the 52-week high of $22.97. Its yield is 2.50%.

Down 37% over 12 months, American Eagle Outfitters has a market cap of $2.74 billion and is traded at a P/B of 2.30.

Founded in 1977, American Eagle Outfitters offers a range of clothing, accessories and personal care products under the American Eagle Outfitters and ‘aerie’ brands. In early 2013, the company operated 893 American Eagle Outfitters stores and 151 aerie stand-alone stores, as well as 49 franchised stores in 13 countries. The company also sells and ships merchandise to 81 countries worldwide through its e-commerce sites.

The company reported financial results for the second quarter ending Aug. 3, 2013, with revenue of $727 million, off 2% from last year’s quarterly revenue of $740 million. The company’s gross profit is down by 11%, with $245 million for the reporting quarter, and operating income decreased by 56% to $29 million. Earnings per share were reported at $0.10, down from the same quarter of last year with an adjusted EPS of $0.21, representing a drop of 52%.

Guru Action: Eleven gurus currently hold AEO shares and there is insider trading.

As of June 30, 2013, Chuck Royce is the top Guru stakeholder, holding 12,820,100 shares, after increasing his position by 13.99%. His shares represent 6.65% of shares outstanding. As of the second quarter, Royce bought 1,573,367 shares at an average price of $19.22 for a loss of 26.2%. He has averaged a loss of 8% on 17,883,737 shares bought at an average price of $15.43. He has also lost 19% on 6,659,537 shares sold at an average price of $17.56 per share.

Tracking share price, revenue and net income:

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Highlight: Urban Outfitters (URBN)

The URBN share price is currently $37.01 or 17.7% off the 52-week high of $44.96. Its yield is 00.0%.

Up 0% over 12 months, Urban Outfitters Inc. has a market cap of $5.45 billion and is traded at a P/B of 3.60. The P/E is 20.70.

Incorporated in 1976, Urban Outfitters Inc. is a lifestyle specialty retail company that operates under the Urban Outfitters, Anthropologie, Free People and Terrain brands. The wholesale segment operates under the Free People and Leifsdottir brands. The company also offers its products and markets its brands directly to the consumer through its e-commerce websites with the same brand names.

The company reported financial results for the three months ending July 31, 2013, with a record net income of $76 million and earnings of $0.51 per diluted share. The company’s total net sales have increased by 12% over the same period a year ago.

Guru Action: Seven gurus currently hold URBN shares and there is active insider selling.

As of June 30, 2013, Jim Simons is the top Guru stakeholder, holding 1,545,400 shares, after increasing his position by 21.72%. His shares represent 1.05% of shares outstanding. As of the second quarter, Simons bought 275,800 shares at an average price of $41.26 for a loss of 10.3%.

Across a five-year history, he has averaged a loss of 11% on 1,545,400 shares bought at an average price of $41.37.

Tracking share price, revenue and net income:

1382132154875.png

Highlight: Body Central Corp. (BODY)

The BODY share price is currently $5.36 or 60% off the 52-week high of $13.39. Its yield is 0.00%.

Down 48% over 12 months, Body Central Corp. has a market cap of $85.5 million and is traded at a P/B of 1.00.

Body Central Corp. is a multi-channel specialty retailer that operates apparel stores, and also conducts direct business via catalogs and a website. The company offers women's clothing, jewelry, accessories and shoes.

Body Central Corp. reported financial results for the second quarter of 2013, with net revenues of $75.1 million, down from $79.4 million for same quarter of 2012. The company reported a net loss of $12.8 million for the second quarter of 2013, compared to a net income of $3.4 million in the second quarter of 2012. As of the end of June 2013, the company operates 286 stores.

Guru Action: Five gurus currently hold BODY shares and there is one 2013 insider trade.

As of June 30, 2013, Chuck Royce is the top Guru stakeholder, holding 408,400 shares, after make a new buy at an average price of $11.05 per share and taking a loss of 51.50%.

Tracking share price, revenue and net income:

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GuruFocus Real Time Picks reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.

Check out the GuruFocus special feature 52-week low screener to find the stocks hitting new lows but are still held by top investor Gurus and Insiders.

About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 2.8/5 (6 votes)

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