To celebrate the holidays, we here at the Fool are
devoting extra virtual ink to all things consumer-focused
in a special section called "The 12 Days of Christmas."
Over the coming week, we'll have our "12 Days of Content"
surrounding consumer-focused names that look set to profit
or perish from the holiday cheer.
You can't "ho, ho, ho" without the reindeer that make
Santa's sleigh go, go, go.
Of course, you know the truth about Santa. All of us
"Santas" are out in the malls taking part in the
maddening rush for toy hamsters. But there's no harm in
playing some reindeer games. I figured I'd take the eight
legendary reindeer, tack on Rudolph for good storybook
measure, and cast retailers as Santa's antlered delivery
force.
Amazon.com (Nasdaq: AMZN): Dasher
Amazon earns its speedy reindeer moniker two ways. The
first, of course, is that Amazon has established itself as
the reliable brand in e-tail. A recent
Zeta Interactive studyfinds that an overwhelming 88% of
the Amazon.com mentions in cyberspace are positive posts. The
retailer's Prime membership program -- for which frequent
shoppers pay $79 a year for "free" two-day shipping on all
Amazon-stocked wares -- is simply target practice to make
sure it consistently delivers on time.
The other reason for claiming the Dasher nameplate is the
company's speedy growth. As big as Amazon may be -- and in
the thick of a global recession, no less -- Amazon.com
continues to stun skeptics with its gains on the top and
bottom lines.
Net sales climbed by 28% in
its latest quarter. Margins exploded, enough to give the
company a 68% profitability pop. Now that's fast.
Â
Abercrombie & Fitch (NYSE: ANF): Dancer
Shoppers are avoiding Abercrombie & Fitch these
days. Comps fell by a whopping 17% last month, even though
sales at its consumer-direct business inched higher.
This isn't the kind of trend an investor likes to see
heading into the telltale holiday season, but it's hard to
give the Dancer crown to anyone other than A&F, with its
scantily dressed catalog models cavorting about.
lululemon athletica (Nasdaq: LULU): Prancer
As a rapidly growing chain of high-end fitness apparel,
lululemon suits up yoga enthusiasts and other well-to-do
shoppers who enjoy prancing around in cozy workout gear.
Revenue soared by 30% in its latest quarter, fueled by
concept expansion and a 10% spike in comps on a
constant-dollar basis. Earnings grew at a staggering 60%
clip, so obviously, lululemon wasn't marking down its fancy
fitness duds to move product.
Limited Brands (NYSE: LTD): Vixen
It's hard to get sexier than Limited Brands, the
company behind the 1,638 Bath & Body Works and 1,043
Victoria's Secret stores.
Selling bathing supplies and lingerie was a tough gig
during the recession, but Limited is starting to bounce back.
Bath & Body Works and Victoria's Secret posted positive
comps of 4% and 3%, respectively, last month.
The year certainly didn't start out positive for Limited.
Comps through the first 43 weeks of the fiscal year are off
by 5%, but Limited Brands' same-store sales had fallen by 8%
year-to-date at this point a year ago.
Hot Topic (Nasdaq: HOTT): Comet
When I think of comets, I envision rare flashes of
brilliance between interminably long periods of darkness.
Step up, Hot Topic. The fringe goth and emo kids found
mainstream success with the
Twilightseries, and suddenly, everyone wanted to don
dark clothing and be a vampire.
The comet crashed, of course. Hot Topic's bright streak of
breakthrough comps
turned negative againearlier this year -- but that
probably pleased the doomsayer emo kids.
Blue Nile (Nasdaq: NILE): Cupid
When you specialize in selling diamond engagement rings
online, you were born to play Cupid.
As you can imagine, recessions are tough for high-end
jewelers. Discretionary income is hard to come by, and
realistic couples simply push off plans to tie the knot.
However, that's perhaps the best reason to pay attention to
Blue Nile for the inevitable pop in popping-the-question
sessions. Continued... |