Listening to CNBC on the drive into work this morning. They were discussing retails stocks and had the Baird retail analyst on. She was quite bullish on J Crew. I love J Crew as a store to shop in, but I stay away from the retail sector (except for TIF), so when she said she thought one of the reasons it was a good buy here (they are reporting earnings after the bell today) is because “they provided good value for quality” I actually laughed out loud.
Let’s be clear – I love-love J Crew. Half of my closet is from there. Have loved them for years since I was kid (long before Michelle Obama started making it so popular – pfft.) But I would in no way ever say their full retail pricing was a good value. HA! Come on? Their quality IS good – better than the Gap brands are anymore, that’s for sure. But considering their price points are on items made in China now? Good value is not how I would describe J Crew. Cute, fun, comfy – sure.
I never buy anything full retail there. Well, that’s not true. I have probably bought 5 items full price. And 3 of them I was able to return shortly after I bought them and get them at a sale price. And I hate doing stuff like that but paying $295 for a blazer and then seeing it on sale for $110 about 1 month later – nope – going back for better price. Sorry.
So I think the Baird analyst needs to re-evaluate what she thinks “good value” is. Perhaps the stock is a good value – that’s questionable in my opinion (early 2009 was a GREAT VALUE!) but the retail sector is tough right now. Trading in 33 range today. Guess we’ll see tomorrow AM after earnings tonight.
I think I give them so much of my money IN the store, owning the stock as well might make sense ;) But TIF also reports tonight – I’d rather spend some money IN store there! :)
REVISED: http://www.reuters.com/article/idCNN2621991720100826?rpc=44
Oops, guess the Baird analyst was wrong about it being a buy at 33….although after-market trades aren’t always indicative of tomorrow’s trading.
