Zacks.com Features the Following Top Stocks in the Clothing Retail Industry: Chico's FAS, bebe stores, Pacific Sunwear, American Eagle Outfitters, and AnnTaylor

Business Wire, April 2, 2004

Business Editors

CHICAGO--(BUSINESS WIRE)--April 2, 2004

The clothing retail industry is back, and the All Stars have five fashionable recommendations to update your investment wardrobe. Here are some of the top recommendations in the clothing retail industry: Chico's FAS, Inc. (NYSE:CHS), bebe stores (NASDAQ:BEBE), Pacific Sunwear of California, Inc. (NASDAQ:PSUN), American Eagle Outfitters (NASDAQ:AEOS) and Ann Taylor Stores (NYSE:ANN). Discover the full story at Zacks.com http://at.zacks.com/?id=96

What Do The All Stars Recommend:

Chico's FAS, Inc. (NYSE:CHS) sells exclusively designed, private-label women's clothing and related accessories. For its fiscal fourth quarter, Chico's reported net income of $26 million, or 29 cents per diluted share, which jumped by +70.3% from the year-earlier result of $15 million, or 17 cents. The per share result also exceeded the consensus by a penny, or more than +3%. Also in the quarter, net sales reached $216 million, marking a +55.8% rise from $138 million. Same-store sales for the company-owned stores advanced +20.5%. For several years now, Chico's has had in place a plan to reach a billion dollars in sales while maintaining operating margins that are at or near the top of the specialty apparel industry. The goal was aptly dubbed the 'Bridge to a Billion,' and Chico's expects that it will finally complete that challenge in fiscal 2004.

bebe stores (NASDAQ:BEBE) designs, develops and produces a distinctive line of contemporary women's apparel and accessories. Last month, bebe stores reported that retail sales in February jumped +34% to $28 million from $20.9 million last year. Furthermore, same-store sales advanced +24.2%, compared to a decrease of -15.2% in the year-ago period. Thanks to higher comparable store sales, improved merchandise margins, and favorable leverage in occupancy and selling, general and administrative expenses; bebe said it expects fiscal third quarter earnings per share of between 11 cents and 14 cents per share. That range is up from the previous forecast of between 4 cents and 7 cents. The company will report its fiscal third quarter on April 22nd.

Pacific Sunwear of California, Inc. (NASDAQ:PSUN) is a leading specialty retailer of everyday casual apparel, accessories and footwear designed to meet the needs of active teens and young adults. Last month, Pacific Sunwear posted strong fiscal fourth quarter results, with net income of $34.3 million, or 43 cents per diluted share, which compares to $23.2 million, or 31 cents, last year. The result also beat the consensus by 1-cent, or more than +2%. Total sales improved +22.9% to $326.3 million from $265.6 million year-over-year, on a same-store sales rise of +12%. Pacific Sunwear expects a busy fiscal 2004, as it plans to pen 110 net new stores and expand or relocate about 35 stores with square footage growing approximately +15%. The net new stores breaks down to 65 PacSun Stores, 5 PacSun Outlet stores, and 40 d.e.m.o. stores, which will bring the year-end store count to 987.

American Eagle Outfitters (NASDAQ:AEOS) is a leading lifestyle retailer that designs, markets, and sells its own brand of relaxed, casual clothing for 15 to 25 year olds, providing high quality merchandise at affordable prices. Yesterday, American Eagle Outfitters announced that month-to-date total consolidated sales and consolidated comparable store sales are up +17.9% and +7.8% respectively. The company also provided a first quarter earnings guidance of 25 cents to 30 cents per share, which would mark a substantial improvement from the 9 cents earnings last year. That range also puts it well ahead of Wall Street expectations. Late February saw American Eagle Outfitters post adjusted net income of $41.5 million or 57 cents per diluted share on total sales of $517.3 million. That earnings result compares to $38.9 million, or 54 cents, last year with a net sales advance of +5.2% from $491.6 million. The per share earnings result also came in two cents ahead of the consensus, marking an advance of more than +3%.

Ann Taylor Stores (NYSE:ANN) is one of the country's leading women's specialty retailers. The company posted net income of about $31.5 million, or 65 cents per share on a diluted basis, which easily surpassed last year's result of about $16.1 million, or 35 cents. Total net sales improved +27.4% to approximately $448.7 million. Same store sales advanced +15.5%, compared to a decline of -12.3% in the year-ago period. Ann Taylor stated that the emphasis on strengthening the brand and enhancing its client's overall shopping experience resulted in strong sales and gross margin performance at both retail concepts, particularly during the fourth quarter and holiday selling season. The company remains comfortable with its full year earnings guidance of between $2.47 and $2.57 per share.

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