Top brands, lower costs limit their risk

Article Excerpt

Clothing sales are rising as the economy continues to recover. However, fashion trends are fickle, and consumers are often quick to switch brands. The six clothing designers and sellers we analyze below own some of the top brand names in the industry. That will help them keep increasing their sales. As well, all six cut costs during the recession. That will let them lower their prices and protect their market shares if sales slow. Still, only three are buys. LIMITED BRANDS INC. $29 (New York symbol LTD; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 322.8 million; Market cap: $9.4 billion; Price-to-sales ratio: 1.1; Dividend yield: 2.1%; WSSF Rating: Average) operates two main retail chains: Victoria’s Secret (lingerie) and Bath & Body Works (soaps and bath oils). It also operates the La Senza lingerie chain in Canada and 30 other countries. The company cut its inventories in response to the recession. That let it avoid costly clearance sales, and sell more of…