5 Clothing and Footwear Stocks With Upside

NEW YORK ( TheStreet) -- Nationwide, from Thanksgiving until Sunday, sales at stores and online grew nearly 16% to $52 billion from $45 billion last year, according to estimates from the National Retail Federation (NRF).

Apparels sales reached an estimated $52 billion for the Black Friday weekend, according to Washington D.C.-based retail trade association National Retail Federation, up from $45 billion consumers spent during last year's Black Friday weekend.

These five stocks have potential upsides ranging from 9% to 45%, based on latest quarterly results. Analysts have buy recommendation of 68% and hold rating of 30%, according to a Bloomberg consensus.

5. V.F.Corporation ( VFC), designs and manufactures or sources from independent contractors a variety of apparel and footwear for all age groups with more than 30 brands. The company offers Jeanswear, outdoor wear, packs, footwear and occupational apparel which are sold worldwide through independent licensees and distributors. It acquired Timberland in Sept. 2011.

Of the 22 analysts covering the stock, 54% recommend a buy and 45% suggest a hold. The stock's 12-months average price target is $146.3, which is 8.9% higher than the current market price, as per a Bloomberg consensus.

For 2011 third quarter, the company reported total revenue of $2.75 billion, up by 23% from $2.23 billion. The company announced 16% organic revenue growth to $22.3 million from $19.2 million. Net income for the quarter grew 24% to $300.7 million from $242.8 million in the same quarter prior year. VF declared quarterly cash dividend of 72 cents per share, an increase of 14% from the previous payout, payable Dec. 19 to shareholders of record Dec. 9.

The company expects full-year total revenue to rise 22% to 23% and pegs organic revenue growth at approximately 13.5%.

The company recently announced the acquisition of full ownership of VF Arvind Brands Private Ltd. from a majority-owned joint venture between VF Corporation and Arvind Ltd. formed in 2006 to market VF brands in India.

4. True Religion Apparel ( TRLG), a design-based jeans and jeans-related sportswear brand, designs markets, distributes and sells apparel under the brand name True Religion Brand Jeans to consumers in six geographies. The company provides various products including denim, knit and non-denim, and come in tops and bottoms. It operates in four segments: U.S. Wholesale, International, U.S. Consumer Direct and Other, which includes licensing activity.

Of the 10 analysts covering the stock, 80% recommend a buy and 10% rate a hold. The stock's average 12-month price target is $37.13, about 9.2% higher than the current price, as per a Bloomberg consensus. Citigroup analysts have a buy rating on the stock.

For 2011 third quarter, net sales reported was $108.4 million, up 16.8% from $92 million in the same quarter last year. Net income for the quarter was $12.3 million, increasing 4.23% from $11.8 million in the year-ago quarter. Same-store sales, for 84 stores and e-commerce, increased 10.2% from the year ago quarter.

Gross margin expanded by 270 basis points to 64.8%, indicating the company's ongoing efforts shift towards its higher margin U.S. Consumer Direct and International wholesale and retail businesses. During the third quarter 2011, the Company opened three stores bringing the total store count to 105 stores as of Sept. 30, 2011, compared to 89 at the end of the third quarter of 2010.

For the fourth quarter, the company expects diluted earnings per share to increase by 10% from 63 cents earned in the same quarter last year.

3. Coach ( COH), is a leading American marketer of fine accessories and gifts for women and men operating in two segments: direct-to-consumer and indirect. The product offerings include women's and men's bags, accessories, business cases, footwear, wearables, jewelry, sun wear, travel bags, watches and fragrance.

Of the 28 analysts covering the stock, 71% recommend a buy and 29% rate a hold. The stock's average 12-month price target is $71.63, about 15.3% higher than the current price, according to a Bloomberg consensus.

The company reported total sales of $1.05 billion for its first quarter of fiscal 2012 ended Oct. 1, up 15% from $912 million in the same period last year. Net income totaled $215 million, growing 14% from $189 million in the same quarter of the prior year. The company also repurchased and retired nearly 1.1 million shares of its common stock at an average $55.30, spending a total $59 million.

In North America, Coach opened nine new factory stores taking the total number of factory stores to 152 at the end of the quarter. Also, Coach China and Coach Japan opened five and two net new locations respectively bringing the total to 71 and 171.

Coach declared a quarterly cash dividend of 22.5 cents per common share payable Jan. 3, 2012 to share holders of record Dec. 5, 2011. The U.S. Securities and Exchange Commission (SEC) has approved Coach's secondary listing on the Hong Kong exchange.

The company has reached a loan deal for approximately $200 million and the credit will be used to finance the construction of its headquarter tower on West 30th Street and Tenth Avenue, sources with knowledge of the matter say. The loan is slated to close early next year.

2. Steven Madden ( SHOO) designs, sources and markets fashion-forward footwear and accessories for women, men and children and also sources products under private label brand names for various retailers. It licenses certain of its brands to third parties for the marketing and sale of certain products, including ready-to-wear, outerwear, intimate apparel, eyewear, hosiery, jewellery, fragrance and bedding and bath products.

Of the seven analysts covering the stock, five recommend a buy and two suggest a hold. The stock's average 12-month price target is $45.67, about 35.5% higher than the current price, according to a Bloomberg consensus.

Steve Madden reported total sales of $313.9 million for 2011 third quarter, up 70.5% from $184.1 million in the same period prior year. Net income for the quarter stood at $31.8 million, growing 39% from $22.9 million in the same quarter last year, or 75 cents per diluted share. For the first nine months of 2011, net sales were $688.8 million compared to $474 million in the equivalent period last year.

The company recently launched two stand-alone stores at Sandton City and Fourways Mall to establish and consolidate its brands' increasing popularity across the country.

For fiscal 2011, the company expects net sales to increase by 49% to 50%, vs. fiscal 2010. Diluted EPS is expected in the range of $2.20 to $2.25.

Recently, the company was recognized as the best corporate multitasker for 2011 for acquiring powerhouse businesses, inking lucrative licensing deals and pulling in major star power for its brands, while expanding its retail presence and upping its financial game.

1. Hanesbrands ( HBI) is a consumer goods company with a portfolio of apparel brands. The company design, manufactures, source and sells a range of apparels. It operates in five segments: innerwear, outerwear, hosiery, direct-to-consumer and international.

Of the 11 analysts covering the stock, 64% recommended a buy and 36% suggest a hold. The stock's average 12-month price target is $34.71, about 45.5% higher than the current price of $177.95, according to data compiled by a Bloomberg.

Hanesbrands reported total sales of $1.23 billion for 2011 third quarter, up 5% from $1.17 billion in the same quarter prior year. Net income rose 48.12% to $90.8 million from $61.3 billion reported last year for the same quarter. Cash and cash equivalents at the end of Oct. 1, 2011 stood at $48 million as compared to $44 million as of Jan. 1, 2011. Operating margin for the quarter came in at 12.4%, the highest since the company's inception in Sept. 2006.

For the fourth quarter, the company expects net sales of $1.2 billion to $1.3 billion, and net sales of $4.7 billion to $4.8 billion for full year 2011. Meanwhile, inventory at the end of 2011 is estimated to be in between $250 and $300 million, higher than year-end 2010 as a result of high inflationary costs. Net capital expenditures for the year 2011 are seen totalling to $90 million, with heavy investments made in the company's infrastructure.

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