And Your Little Dog, Too

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There are some classic movie lines that just don't belong in casual conversation about one's portfolio.

"You've got to ask yourself one question. Do I feel lucky? Well, do you punk?"

No. Punk, metal, and Goth haven Hot Topic (Nasdaq: HOTT) has certainly not felt all that lucky this year, with sluggish same-store sales tripping up the company's mosh pit of an expansion strategy.

"We'll always have Paris."

Sure. Good luck trying to convince Disney (NYSE: DIS) that Disneyland Paris isn't in a deep financial funk and that the theme park isn't an eternal lock.

"I'll get you, my pretty, and your little dog, Too!"

Rubbish! You can say a lot of things about specialty retailer Too (NYSE: TOO), but one thing it surely isn't is a dog. The Limited (NYSE: LTD) spinoff that caters to the younger set craving sugar and spice and everything nice is turning in a great year.

Last night the company announced that a healthy back-to-school shopping season found the mall staple's comps climbing by roughly 5% over the past two months. That now has the company expecting earnings per share to come in between $1.05 and $1.07. It earned $0.82 a share last year.

Over the past year, the company's stock has been doing pretty much what its stores are doing -- trading in the teens. Technically, Too aims for the preteen market, which is a mostly underserved tweener niche.

That's a good thing, as the competition is much more fierce on the opposite ends. Gymboree (Nasdaq: GYMB) and Children's Place are hurling teething rings at one another in the toddler segment while chains like Aeropostale (NYSE: ARO) and The Buckle (NYSE: BKE) hope to win them over in their high school years.

While Too may be trading essentially where it was when Limited pushed it toward its market debutante dance nearly six years ago, don't mistake the equity's stagnancy with dog breath. Too is doing quite well right now. It's got bite. Call the company's investor relations department and ask for some financials. I think you'll like what you hear -- and ultimately see. It may very well have you at "hello."

Are you ever shocked at what kids are wearing these days? How hip are you when it comes to the latest fashions? What's in? What's out? All this and more in the What to Wear? discussion board. Only on Fool.com.

Longtime Fool contributor Rick Munarriz is almost grateful that he's got two sons that lack fickle fashion sense. He does not own shares in any companies mentioned in this story.

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Related Tickers

11/9/2009 1:59 PM
LTD $18.63 Up +0.45 +2.48%
Limited Brands Inc… CAPS Rating: **
GYMB $42.52 Up +0.47 +1.11%
The Gymboree Corp CAPS Rating: **
HOTT $6.79 Down -0.04 -0.59%
Hot Topic, Inc. CAPS Rating: *
TOO $17.00 Up +0.44 +2.66%
Teekay Offshore Pa… CAPS Rating: ***
DIS $28.89 Up +0.33 +1.16%
The Walt Disney Co… CAPS Rating: ****
BKE $30.11 Up +0.61 +2.07%
The Buckle, Inc. CAPS Rating: ***
ARO $34.00 Up +0.30 +0.89%
Aeropostale, Inc. CAPS Rating: **

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