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What: Shares of clothing retailer rue21
So what: Revenue in the fiscal first quarter rose 19% to $205.6 million, just barely topping estimates. Net income was $11.6 million in the quarter, or $0.46 per share, $0.03 ahead of estimates. The company increased its earnings guidance by $0.02 to a range of $1.76 to $1.81 per share for the full year.
Now what: The numbers were good but not great, and the stock has settled down some from the initial pop. Same-store sales rose only 1.7%, and I'd like to see that drive revenue growth instead of just new store openings. Shares now trade at 16 times the top end of guidance, not a bad price considering the company's growth. I'm not excited enough about the growth to jump into shares today but if same-store sales improve, the stock could be a nice value.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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