The retailer offers an attractive domestic and international growth story and strong free cash flow generation.
The narrow-moat apparel maker capitalized on strong consumer demand during the latest quarter.
The narrow-moat retailer remains a best-in-class firm in the sector and can achieve low-single-digit average annual revenue growth over the next five years with an operating margin in the 6% range.
Improved profitability should follow the apparel maker's return to revenue growth.
With recovering comparable sales pointing to intact brand strength, the stock price is unjustified.
The narrow-moat retailer generated decent sales growth last quarter by correcting merchandising issues and capitalizing on a strong consumer.
A stronger consumer, cold weather, and tax benefits were large contributors to the retailer's fourth-quarter results.
The narrow-moat firm's profitability challenges are transitory, we think its intangible asset remains strong.
While there is always brand risk associated with allegations of ethical missteps, we think the board's swift and decisive action will likely mitigate this.
Product hits and misses and brick-and-mortar exposure will continue to challenge this no-moat retailer.
Improved inventory management and merchandising, a stronger consumer, and success with marketing, branded products, and partnerships will drive performance for the no-moat retailer.
The no-moat retailer has little defense against off-price and online competitors.
We plan to raise our $59 fair value estimate, but we still see shares as overvalued today.
New store openings and comparable sales growth will moderate long term as the athletic apparel market becomes more saturated and the athleisure trend fades.
We've awarded Lululemon a narrow economic moat, as the firm has created a niche that the biggest global athleticwear companies, due to their ubiquity, cannot match.
We think L Brands and TJX look attractive ahead of the crucial holiday sales weekend.
Despite the third-quarter improvement in performance, we expect future performance to be volatile.
Efforts to focus on profitable and higher growth vehicles, while reducing exposure to traffic-challenged real estate and increasing productivity, are hitting home.
The current discount to our fair value estimate provides investors an attractive entry point to a wide-moat company experiencing an inflection in performance.
Although traffic continues to be a headwind for the no-moat retailer, cost savings programs are on track.
Victoria's Secret parent L Brands has a wide economic moat and is trading at an attractive discount.
We think resuming the exploration after the holidays is a smart move, and we are maintaining our $53 fair value estimate.
L Brands is not without its challenges, but we think the market has overreacted to headwinds.
Retailers realize foot traffic is declining, but reactions have largely failed to return performance to historical growth levels.
The new pilot programs are a unique way to draw foot traffic into Kohl's stores and to expand reach to new customers and give Amazon low-risk access to a brick-and-mortar presence.
Improved performance in stores and online should persist this year as the company continues to benefit from website enhancements and new product introductions.
Product, marketing, and supply chain changes are hitting their mark and will continue to drive future top-line growth.
The second quarter was the third consecutive quarter of comparable sales growth, but the no-moat retailer is not out of the woods yet.
We view the firm's shares as fairly valued today.
We see little change to our $53 fair value estimate and view shares as a touch undervalued.
We see signs of improvement in the second quarter and view shares as fairly valued.
We see room for both healthy dividend growth and stock appreciation in the undervalued narrow-moat apparel manufacturer.
Too many stores, e-commerce, and a shift in demand have been weighing on the sector, says Morningstar's Bridget Weishaar.
Even after the price bump from the news, the stock trades for less than we think it’s worth.
We can understand how the family views the narrow-moat company as having underappreciated value in the market.
We think the ultimate success that can be realized is uncertain given an overcrowded and overstored industry with many competitors pursuing similar goals.
We are encouraged by management's quick response to flagging sales and the results achieved by initiatives.
The undervalued narrow-moat retailer's performance continues to top that of department stores.
We still think Nordstrom is the best in class department store operator.
In addition to top-line concerns, we also remain worried about the long-term margin trajectory of the company.
The narrow-moat company's hookup is strategically sound, but better positioning Kate, extracting synergies, and expanding globally will take investment priority.
We continue to view shares as undervalued and an attractive opportunity to own a wide-moat company in the branded apparel space.
The narrow-moat company is better positioned than its competitors with a smaller store footprint, differentiated customer service and product curation, and its successful complementary off-price concept.
Though the near term is likely to be rocky as management struggles to right its promotional strategy and product assortment, we think shares are undervalued for long-term investors.
Shifts to e-commerce combined with better-priced competition in the off-price segment will continue to eat into the no-moat retailer's market share.
We see Coach shares as fairly valued after second quarter results that were in line with our expectations.
In the long run, growth and pricing power will be limited as the athleisure fashion trend fades and as competitors including Nike, Under Armour and Athleta increase their market share.
Although the no-moat retailer posted a comparable sales increase after a string of declines, we think the shares are fairly valued today.
The retailer's ongoing lack of pricing power is leading us to nick a few dollars off our $40 fair value estimate.
Although Lululemon has a brand synonymous with quality and innovation, we expect little market share gain as other high quality competitors have flooded the space.