I had the pleasure to listen in on the last conference call. Outside of the hour it took to connect everything was positive. Most notably JOEZ management team has a very aggressive outlook on the retail sector. With the second outlet store set into place in Orlando and the first one in New York already out of the ground, they should prove to have a good quarter as far as organic growth goes.
Many denim companies, like True Religion, have market confidence. And, at face value, I think that Joe's Jeans is undervalued by about a dollar. One analyst put their true value at $2.75 a share. So as far as I am concerned, they are ON SALE.
Look for a good report on consumer spending. Even with the credit crisis looming in the background, I think that consumer spending, especially in high end sectors, will remain strong. The only truely effected companies are those connected to large purchases and not those connected to discretionary spending. Moreover the companies that produce luxury items as the buyer is usually not effected by a blip on the economy.
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