Tommy Hilfiger Turnaround May Be Close at Hand
Now is a good time for investors to consider buying the stock again.
Beleaguered clothier Tommy Hilfiger's (TOM) troubles aren't over yet, but the company seems to have a handle on what it needs to do to turn things around. At Wednesday's closing price of 9 1/2--more than 75% off the 52-week high--this is an excellent time for investors to begin buying shares.
Although Wednesday's earnings release was relatively uneventful, investors can see faint signs that Tommy is in the beginning stages of a turnaround. Earnings for its quarter ended June 30 sank 75% from the year-earlier period. Despite the earnings decrease, the company beat lowered expectations of $0.09 a share by a penny.
Mark Sellers does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.