14 Apparel Stocks With Falling Inventory Turnover Ratios

Screen Criteria:

All of the Apparel companies mentioned below have reported rising inventory levels, when compared to quarterly revenue growth.

Average Weekly Returns:

Average 1-Week Return of All Stocks Mentioned Below: -0.98%

Average 1-Month Return of All Stocks Mentioned Below: 8.75%

Analysis of List Alpha:

Number of Stocks in This List Generating Excess Return vs. SP500 (Beta Adjusted Over Last Week): 1 out of 14 (7.14%)

Number of Stocks in This List Generating Excess Return vs. SP500 (Beta Adjusted Over Last Month): 7 out of 14 (50.0%)

Chart: Distribution of 1-Week Returns For All Stocks Mentioned Below


Chart: Distribution of 1-Month Returns For All Stocks Mentioned Below


(List sorted by monthly performance, from best to worst)

1. Christopher & Banks Corporation (CBK): Operates as a retailer of women’s apparel in the United States. Size of inventory grew by 0.03% during the most recent quarter ($58.19M vs. $58.17M y/y), while revenue only increased by -5.36% ($117.26M vs. $123.9M y/y). Inventory, as a percentage of current assets, increased from 45.65% to 58.41% during the most recent quarter (time interval comparison 13 weeks ending 2012-10-27 to 13 weeks ending 2011-11-26).

2. Express Inc. (EXPR): Operates specialty retail stores in the United States. Size of inventory grew by 2.99% during the most recent quarter ($286.88M vs. $278.54M y/y), while revenue only increased by -3.75% ($468.53M vs. $486.78M y/y). Inventory, as a percentage of current assets, increased from 56.99% to 63.48% during the most recent quarter (time interval comparison 13 weeks ending 2012-10-27 to 13 weeks ending 2011-10-29).

3. Deckers Outdoor Corp. (DECK): Engages in the design, production, marketing, and brand management of footwear and accessories for outdoor activities and everyday casual lifestyle use. Size of inventory grew by 36.23% during the most recent quarter ($486.17M vs. $356.87M y/y), while revenue only increased by -9.16% ($376.39M vs. $414.36M y/y). Inventory, as a percentage of current assets, increased from 47.62% to 54.59% during the most recent quarter (time interval comparison 3 months ending 2012-09-30 to 3 months ending 2011-09-30).

4. Skechers USA Inc. (SKX): Engages in the design, development, marketing, and distribution of footwear for men, women, and children in the United States and internationally. Size of inventory grew by 26.76% during the most recent quarter ($302.14M vs. $238.36M y/y), while revenue only increased by 4.19% ($429.43M vs. $412.18M y/y). Inventory, as a percentage of current assets, increased from 28.78% to 32.44% during the most recent quarter (time interval comparison 3 months ending 2012-09-30 to 3 months ending 2011-09-30).

5. Guess’ Inc. (GES): Engages in the design, marketing, distribution, and licensing of apparel and accessories for men, women, and children. Size of inventory grew by 9.57% during the most recent quarter ($422.3M vs. $385.4M y/y), while revenue only increased by -2.17% ($628.83M vs. $642.8M y/y). Inventory, as a percentage of current assets, increased from 30.19% to 37.5% during the most recent quarter (time interval comparison 3 months ending 2012-10-27 to 3 months ending 2011-10-29).

6. Citi Trends (CTRN): Operates as a retailer of urban fashion apparel and accessories in the United States. Size of inventory grew by 15.37% during the most recent quarter ($146.7M vs. $127.16M y/y), while revenue only increased by 4.14% ($148.99M vs. $143.07M y/y). Inventory, as a percentage of current assets, increased from 67.06% to 70.17% during the most recent quarter (time interval comparison 13 weeks ending 2012-10-27 to 13 weeks ending 2011-10-29).

7. Quiksilver Inc. (ZQK): Designs, produces, and distributes branded apparel, footwear, accessories, and related products. Size of inventory grew by 7.19% during the most recent quarter ($391.05M vs. $364.83M y/y), while revenue only increased by 1.81% ($512.44M vs. $503.32M y/y). Inventory, as a percentage of current assets, increased from 38.48% to 41.15% during the most recent quarter (time interval comparison 3 months ending 2012-07-31 to 3 months ending 2011-07-31).

8. rue21, Inc. (RUE): Operates as a specialty apparel retailer in the United States. Size of inventory grew by 26.42% during the most recent quarter ($180.61M vs. $142.87M y/y), while revenue only increased by 15.61% ($225.16M vs. $194.76M y/y). Inventory, as a percentage of current assets, increased from 67.89% to 70.74% during the most recent quarter (time interval comparison 13 weeks ending 2012-10-27 to 13 weeks ending 2011-10-29).

9. Wacoal Holdings Corp. (WACLY): Designs, manufactures, and markets women’s intimate apparel primarily in Japan, Asia, the Americas, and Europe. Size of inventory grew by 12.25% during the most recent quarter ($35,742M vs. $31,842M y/y), while revenue only increased by 3.54% ($47,514M vs. $45,891M y/y). Inventory, as a percentage of current assets, increased from 33.71% to 38.23% during the most recent quarter (time interval comparison 3 months ending 2012-09-30 to 3 months ending 2011-09-30).

10. Bebe Stores, Inc. (BEBE): Engages in the design, development, and production of women’s apparel and accessories. Size of inventory grew by 11.11% during the most recent quarter ($41.49M vs. $37.34M y/y), while revenue only increased by -7.27% ($117.09M vs. $126.27M y/y). Inventory, as a percentage of current assets, increased from 14.85% to 17.51% during the most recent quarter (time interval comparison 3 months ending 2012-09-29 to 3 months ending 2011-10-01).

11. Wet Seal Inc. (WTSLA): Operates stores that sell fashionable and contemporary apparel and accessory items designed for female customers. Size of inventory grew by 7.05% during the most recent quarter ($46.19M vs. $43.15M y/y), while revenue only increased by -10.91% ($135.54M vs. $152.13M y/y). Inventory, as a percentage of current assets, increased from 20.33% to 23.04% during the most recent quarter (time interval comparison 13 weeks ending 2012-10-27 to 13 weeks ending 2011-10-29).

12. True Religion Apparel Inc. (TRLG): Designs, develops, manufactures, markets, distributes, and sells apparel in North America, Europe, Asia, Australia, Africa, and South America. Size of inventory grew by 18.45% during the most recent quarter ($64.08M vs. $54.1M y/y), while revenue only increased by 9.40% ($118.55M vs. $108.36M y/y). Inventory, as a percentage of current assets, increased from 19.25% to 21.81% during the most recent quarter (time interval comparison 3 months ending 2012-09-30 to 3 months ending 2011-09-30).

13. Vera Bradley, Inc. (VRA): Engages in the design, production, marketing, and retail of functional accessories for women under the Vera Bradley brand. Size of inventory grew by 21.79% during the most recent quarter ($135.31M vs. $111.1M y/y), while revenue only increased by 14.20% ($138.35M vs. $121.15M y/y). Inventory, as a percentage of current assets, increased from 62.77% to 65.94% during the most recent quarter (time interval comparison 13 weeks ending 2012-10-27 to 13 weeks ending 2011-10-29).

14. Cache Inc. (CACH): Operates as a mall-based specialty retailer of women’s lifestyle sportswear and dresses in the United States. Size of inventory grew by 7.11% during the most recent quarter ($23.81M vs. $22.23M y/y), while revenue only increased by -5.90% ($45.79M vs. $48.66M y/y). Inventory, as a percentage of current assets, increased from 40.98% to 53.15% during the most recent quarter (time interval comparison 13 weeks ending 2012-09-29 to 13 weeks ending 2011-10-01).