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Are There Any Value Stocks In The U.S. Apparel Store Industry?

The US Apparel Store industry was the poor performer in the consumer products sector going into 2014 with a glut of competition, excess store inventories, heavy discounting, and reduced mall traffic resulting in dismal earnings and top executive position vacancies.

The category was ripe for consolidation and market exits which begun happening. As had been alluded to over a week ago, a stronger USD, tighter inventory positions, and lower cotton prices could provide much needed tailwinds to the sector. Many companies have been able to rebound from their low prices, offering returns above the S&P 500 over the past 52 weeks. For example, an investor with a position in American Eagle Outfitters (AEO) experienced a 50% appreciation since last year's low.

This article is an exploration into the relative value of the 25 companies in the US Apparel Store industry with over $300M in market cap as of 2/6/15. (Note:… Read More …