Investing

Try Jim Cramer's Action Alerts PLUS
CLICK HERE NOW

Dress Your Portfolio for School Season

08/22/06 - 07:23 AM EDT

Jim Cramer

Back-to-school season means shopping -- but not just for notebooks and new shoes for the kids. Do some portfolio homework on the new school year. I took a look at this annual spending event and found two retailers likely to wind up at the head of the class.

My first pick is The Children's Place(PLCE - Cramer's Take - Stockpickr). This isn't just the best in the kids' apparel space; it's one of the best retailers out there, absolutely best of breed.

The company just reported a great quarter, beating estimates, raising guidance and posting an increase in same-store sales for the second quarter of 16%. A few weeks ago, it gave us the biggest number bump in all of retail, indicating back-to-school sales are off to a hot start. Children's apparel is absolutely on fire right now -- especially denim -- and The Children's Place has all the right products.

The Disney Stores, which The Children's Place acquired a few years ago, are also rocking. The stores posted a 15% comparable increase during the quarter, further proof that they are turning around. Gross margins also have improved, and The Children's Place feels confident the Disney locations eventually can get to the level of Children's Place stores. Going forward, the Disney Stores face easy comps in the second half and should see a boost from the upcoming release of The Little Mermaid Platinum Edition DVD in early October.

Previous «
1 2
At the time of publication, Cramer had no positions in the stocks mentioned.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Listen to Cramer's RealMoney Radio show on your computer; just click here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here.

TheStreet.com has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from TheStreet.com.


Previous Story

Wall Street Plays Oldies

TheStreet Picks

Investing

Go To Section Home


08/21/06
Wall Street Plays Oldies

There's a '50s conformity settling in that suppresses the economic dangers.


08/21/06
Maven: Google Bears?

Insiders definitely aren't buying. Plus, Bristling-With-Trouble-Myers.


08/21/06
The Daily Blog Watch

Big trouble in 'Net China, playing with Stardolls pays off, and Friendster in high places.


08/16/06
Maven: Retail Rethink

Shed complacent thoughts about Wal-Mart and Gap.


08/15/06
Abercrombie Sees Strong Second Half

The retailer beats Wall Street's second-quarter targets by a penny.


08/09/06
Retail to Break Through Clouds

Second-quarter profits are expected to hold up, despite ongoing worries about consumer spending.


08/03/06
Try Abercrombie On for Size

This value-oriented consumer name looks highly attractive.


08/05/08
Three Internet Stocks That Could Double

These forgotten Internet stocks are being accumulated by hedge funds.


08/15/08
The Five Dumbest Things on Wall Street

Raspberries for Apple; You'll be sorry, UBS; Fortress or Fort Knox? Wholly unappetizing Foods; give Liberty AOL or give them...


08/15/08
McCain Fund-Raising Picks Up

The GOP presidential candidate raised $27 million in July.


08/15/08
Cash-Back Cards Aren't Money in the Bank

Some credit and debit cards give you some cash back on purchases. But you need to manage it well to benefit from it.


Your Recent Quotes: Quote Up0 | Quote Down0
Dow S&P 500 NASDAQ
Oil*
Gold
10 Yr
0.00%
%
%
%
Data delayed 20 min
Sign up for our FREE newsletters now. See All

  • Cramer's Daily Booyah!
  • Before the Bell

Premium Stock Ideas
Access Action Alerts Plus to find out Cramer’s latest picks now!