J. Crew Stock Soars on Forecast Boost
(Updated with analyst commentary)
The company now expects earnings in the range of 54 cents to 59 cents a share, up from a prior forecast between 30 cents and 33 cents.
J. Crew also announced that it is seeing some positive signs for the fourth quarter, which includes the all-important holiday season. Management foresees a same-store sales increase in the mid-to-high single digits.The preppy retailer has continued to offer newer merchandise (even First Lady Michelle Obama is a fan) even as other retailers play it safe. It is also tightly controlling inventory and hasn't resorted to drastic markdowns, as its competitors have done. "We believe the company is one of the key winners for the fall season," Eric Beder, analyst at Brean Murray, Carret, wrote in a note. "And [it] is demonstrating that even in tough times, the consumer will pay a premium for strong fashion items that resonate with their core values." As a result, Beder upped his price target to $44 from $42. J.Crew plans to release its quarterly report on Nov. 23. Shares of the company are soaring by 12% to $42.27 in afternoon trading. -- Reported by Jeanine Poggi in New York Follow TheStreet.com on Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV