Top 15 Retail Apparel Stocks by Marvin Score
Marvin ranks 15 retail apparel stocks by Overall score within the Apparel - Retail industry. The Buckle, Ross Stores and Urban Outfitters rank highest. Each pick below lists its strengths and one caution.
Retail apparel companies sell clothing, shoes and accessories to shoppers through their own stores and websites. Because fashion tastes and spending change, results can differ a lot from one company to the next. That is why a ranking based on financial figures can help.
This list covers 15 companies in the Apparel - Retail industry, ordered by Marvin's Overall score. The score blends how strong a business looks (quality) with how its current standing compares with industry peers (opportunity). Margins, return on equity and debt are good places to start reading each company.
Keep in mind that the scores only compare companies with others in the same industry today. They are not forecasts or advice. Some figures are missing for certain companies, and the blurbs point that out.
The list
How Marvin ranked these stocks
Marvin included companies above about $300 million in size and ranked them by Marvin scores, which run from 0 to 100. The Apparel - Retail industry is shown with the highest Overall score first. Scores are relative to each company's own industry, so a high score means a company looks strong compared with other apparel retailers, not compared with every stock in the market.
Companies above about $300 million in size, ranked by Marvin scores (0-100, relative to each company's own industry). The Apparel - Retail industry, highest Overall score first.
The stocks, one by one
The Buckle, Inc. BKE
The Buckle has the top Overall score, 95, helped by an operating margin of 20.8% and return on equity of 45.2%, both strong. Growth was a modest 6.6% last year, and no debt-to-equity figure is available, so its debt picture is unclear.
Ross Stores, Inc. ROST
Ross Stores has a quality score of 93, with return on equity of 39.4% and a free cash flow margin of 11.4%. Revenue grew 7.7% last year. One caution: its gross margin of 29.7% is lower than most others on this list.
Urban Outfitters, Inc. URBN
Urban Outfitters grew revenue 11.1% last year and earned an operating margin of 11.3%. Its opportunity score is 82. A caution: its free cash flow margin of 4.6% is much smaller, so less of each sales dollar turns into free cash.
Abercrombie & Fitch Co. ANF
Abercrombie & Fitch has the highest opportunity score on the list, 92, plus return on equity of 39.6% and an operating margin of 13.7%. Growth was a modest 6.4%. Gross margin and debt figures are not available, which limits the picture.
The TJX Companies, Inc. TJX
TJX has the highest quality score here, 96, with return on equity of 57.0% and a free cash flow margin of 9.4%. Its opportunity score is only 42, and no operating margin is available. Debt-to-equity is 1.34, a moderate level.
American Eagle Outfitters, Inc. AEO
American Eagle Outfitters has an opportunity score of 95 but a middling quality score of 61. Its operating margin is 7.8%, and revenue growth was a slow 4.1% last year. Those thinner profit and growth figures are the main caution.
Boot Barn Holdings, Inc. BOOT
Boot Barn has the fastest revenue growth on this list, 17.9%, along with an operating margin of 13.6%. A caution: its free cash flow margin is just 5.0%, well below its operating margin, and no debt-to-equity figure is available.
The Gap, Inc. GAP
Gap has a gross margin of 43.3% and return on equity of 31.6%, both healthy. Revenue growth was only 1.9% last year, and debt-to-equity of 1.45 is higher than several peers here. Slow growth is the main caution.
Lululemon Athletica Inc. LULU
Lululemon has the highest gross margin on the list, 56.1%, and an operating margin of 17.8%. Its quality score is 86, but its opportunity score is 54, which holds back the Overall score. Growth was modest at 4.9%.
Carter's Inc. CRI
Carter's turned a good share of sales into cash, with a free cash flow margin of 9.8% against an operating margin of 9.5%. The caution is growth: revenue rose only 1.9%, and its quality score is a middling 58.
Victoria's Secret & Company VSXY
Victoria's Secret & Company posted return on equity of 38.2% and an operating margin of 7.9%. The caution is debt: its debt-to-equity ratio of 2.93 is on the high side for this list, which can add risk when sales soften.
Genesco Inc. GCO
Genesco has a gross margin of 47.5%, but far less of that reaches the bottom line: its operating margin is just 2.0% and return on equity is 7.5%. Those thin profit figures are the main caution, despite an opportunity score of 70.
Caleres, Inc. CAL
Caleres has an opportunity score of 79, but its quality score is a low 42. Operating margin is only 3.1% and revenue growth was 1.3%, so profits and growth are both thin. No debt-to-equity figure is available.
Burlington Stores, Inc. BURL
Burlington Stores grew revenue 8.8% and earned return on equity of 35.7%. The cautions are a free cash flow margin of just 3.4% and debt-to-equity of 2.95, the highest on this list. No operating margin is available.
Shoe Station Group Inc. SHOE
Shoe Station Group is the only company here with shrinking sales: revenue growth was -5.6%. Its free cash flow margin is 6.0%, but return on equity is only 3.6%. Its Overall score of 48 is the lowest of the 15.
Common questions
What does Marvin's Overall score mean?
It is a score from 0 to 100 that sums up how a company looks compared with other companies in its own industry today. It combines quality, which reflects the strength of the business, with opportunity. It is a way to compare companies, not a prediction.
Does a high score mean I should buy the stock?
No. The scores describe how a company compares with industry peers based on its financial figures. They do not account for your goals or risk tolerance, and they do not predict future results. Treat them as a starting point for your own research.
Why are some figures missing for certain companies?
Not every company reports every figure in a form Marvin can use, such as operating margin, gross margin or debt-to-equity. When a figure is missing, the blurb avoids it and notes the gap, so it is worth checking the company's own reports.
Keep reading
- Top 12 Apparel Stocks by Marvin Scores
- Top 15 Consumer Cyclical Stocks by Marvin Opportunity Score
- Top 15 Consumer Cyclical Companies by Business Quality
- Top 15 Consumer Cyclical Stocks Right Now
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Marvin's scores (0-100) compare each company with others in its industry today. Growth and margin figures come from SEC filings. This is general information, not personal investment advice or a recommendation to buy or sell anything. Do your own research.