"Trends in Nordstrom's credit card business were mostly positive in March," Credit Suisse analysts wrote in an April 16 report. "Portfolio yield increased on a sequential basis by 66 bps. Payment rate remains positive y/y. Charge offs increased by 34 bps m/m to 5.63%, but decreased by 222 bps y/y. Delinquencies were down 29 bps m/m. Going forward, we expect a continued stabilization in credit profitability. Credit revenue will likely see some pressure however from the implementation of the CARD Act (stage 3) and lower outstanding balances."Shares of Nordstrom hit a 52-week high Wednesday of $57.10. The stock's 52-week low of $37.28 was set on Aug. 19. Nordstrom's forward P/E is 14.35; the average for apparel retailers is 17.3. For comparison, Limited Brands (LTD) has a higher forward P/E of 15.76. Fourteen of the 25 analysts who cover Nordstrom rated it buy. Nine analysts gave the stock a hold rating and two rated it sell. The stock has risen 14.73% year to date.
Lululemon "Lululemon is accumulating one of, if not the best, boards in the industry," Jefferies analysts wrote in an April 25 report. "If nominated, Mr. Stritzke will be the company's 10th director. Mr. Stritzke follows recent (2011) appointees Emily White, Senior Director Local and Mobile Partnerships at Facebook and Jacques Levy, former Chairman and CEO at Sephora. The remaining board members' pedigrees are equally impressive with experience at companies that include Starbucks, Saks, and Staples. This impressive board supports a management team full of highly qualified industry veterans (that we met earlier this month) from companies like Nike, Adidas, Abercrombie, Gap, etc." Shares of Lululemon hit a 52-week high Wednesday of $79.43. The stock's 52-week low of $41.18 was set on June 7. Lululemon's forward P/E is 38.04; the average for clothing and accessories 21.31. For comparison, Gildan Activewear (GIL) has a lower forward P/E of 12.91. Thirteen of the 23 analysts who cover Lululemon rated it buy. Nine analysts gave the stock a hold rating and one rated it sell. The stock has risen 69.25% year to date.
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