I've always thought retail to be a rather ho-hum business and retail stocks a tricky place to invest cash, most of all in those stores that specialize in hip clothes for subadults. After all, fashions change quickly, and teens are the ficklest shoppers of the bunch. Just look at recent disappointments for Abercrombie & Fitch
But Gen Y duds dealer Aeropostale
In looking through the numbers, it's tough to find anything worth your worry. Gross margins have improved all year, notching a 3.1% gain this quarter. At the same time, operating expenses dropped 2.6%. The balance sheets look better than ever, with $97 million in cash and no debt. That's more than enough to cover the roughly $44 million needed for expanding the store base this year.
This kind of torrid but smartly managed growth makes the firm look a lot like Chico's FAS
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