Investors seem to be taking a dour approach to many retailers lately. But one retailer, which targets 'tween girls, ages 7 to 14, has bucked the trend by providing some upbeat news. Too
It seems that Too, which used to be owned by LimitedBrands
Back-to-school sales were even better than expected. If you take a look back at the second quarter, you'll see that Too reported back-to-school sales were doing well. (At that time, the company also reported a nice 150% increase in quarterly profit.)
Although many companies -- including retailers -- have blamed the hurricanes for poor performance, Too says the disasters did little harm to its sales, since it only has five stores that are still closed.
My Foolish colleague Seth Jayson has advised Fools rather recently to ignore the retail doomsayers. Along with powerhouse stocks like Chico's
However, shares of Too increased 5% in today's trading, and the stock already has a P/E ratio of 22, which is currently higher than that of a few other teen-oriented retailers, such as Aeropostale
Too might be fast becoming one of the pricier bets in a lucrative retail niche.
Alyce Lomax does not own shares of any of the companies mentioned.