Body Central Corp.

  • You Should Worry About This Retailer

    By William Bias - June 24, 2013 | Tickers: BODY, RUE, MW

    On June 19 the board of directors of apparel retailer Men’s Wearhouse (NYSE: MW) abruptly fired its Executive Chairman and Founder George Zimmer. Management turnover is never a good sign for a company’s prospects. If you’re an investor you need to worry.

    What happened?

    The short answer is: Who knows?

    The firing of the well-known business figure famous for his catch phrase, “You’re going to like more »

  • 3 Companies Restrategizing for a Better Future

    By William Bias - May 14, 2013 | Tickers: BODY, HAS, WDFC

    Sometimes a company falls into a rut. Profitability declines. Share prices get dangerously close to zero. Management then comes to its senses and comes up with a new strategy for success. The three companies discussed below are currently in the process of refocusing in a new direction that could benefit their shareholders.

    New blood

    Apparel specialty retailer Body Central (NASDAQ: BODY) started making missteps in its inventory and fashion choices more »

  • Body Central: A New Hope

    By William Bias - March 18, 2013 | Tickers: BODY, RUE, WTSL

    Apparel retailer Body Central (NASDAQ: BODY) struggled throughout 2012. Same store sales and net income fell 8.1% and 40% respectively. Operating margins declined 44 basis points to 6.2% during the year. February 2013 saw the beginnings of new hope with the appointment of a new CEO, the ousting of merchandising Vice President Beth Angelo, and the installation of a new merchandising team. Body Central may serve as an more »

  • 5 Companies With Big Plans to Watch

    By William Bias - March 18, 2013 | Tickers: BODY, DPS, LOW, SODA, TGT

    A CEO with a good management team can take a languishing company and turn it into a growth machine in a position of market leadership with the capability of making shareholders rich in the process. However, some of these turnaround situations provide a great deal of extra risk stemming from the possibility of these grand plans not working out. The five companies presented below are headed by management teams looking more »

  • Hot Topic is Getting Hot

    By Anh HOANG - March 12, 2013 | Tickers: ANF, BODY, HOTT

    Recently, the private equity firm Sycamore has announced that it would take Hot Topic (NASDAQ: HOTT) private for around $14 per share, with a total transaction value of $600 million. A price tag of $14 per share represented a 29% premium to Hot Topic’s closing price on Wednesday. Let’s take a closer look into Hot Topic to see whether or not this price is fair for this specialty more »

  • Avoid This Retailing Value Trap

    By William Bias - January 22, 2013 | Tickers: BODY, RUE, WTSL

    On Jan. 15, Body Central (NASDAQ: BODY), a specialty apparel retailer catering to young women,  announced 4th quarter 2012 sales results and issued another downward revision in guidance. Net revenue increased a microscopic 0.4% with comparable sales (stores open longer than a year) declining 12%. Full year EPS guidance now hovers in the $0.68 to $0.70 per share range representing a 44% to 43% decline from the $1.22 reported in 2011. Body Central’s stock declined 65% since the beginning of 2012 (see chart below) and currently trades with a P/E of roughly 9. With that said, Body Central is a value trap to be avoided.

  • This Retailer is Too Cheap to Ignore

    By Anh HOANG - November 21, 2012 | Tickers: ARO, BODY, RUE

    With the small cap series, I would like to talk about small cap opportunities the value investing way. Warren Buffett mentioned that he could make higher returns with a smaller amount of capital, such as 50% yearly on $1 million dollars.  I think with a small amount of capital, he would focus on undervalued stocks with little analyst coverage and competition from other investors. However, the small cap stock might more »

  • The Trip to the Bottom Continues…..

    By William Bias - November 9, 2012 | Tickers: BODY, RUE, WTSL | Editor's Choice

    On Nov. 1, specialty apparel retailer Body Central (NASDAQ: BODY) came out with its earnings announcement and had its conference call. This announcement confirms that Body Central’s trip to the fundamental bottom continues. Its comparable store sales declined 12%. Net revenue edged ahead a mere 1.2% due to unjustified store expansion. Net income declined to $153,000 versus $2.8 million this time last year. After four months of observing Body Central I came up with four issues that this company can’t seem to resolve. It’s “curtains” for this company unless they can come up with some viable solutions for these problems.

  • What Caused This Retailer's Runaway Run-Up?

    By William Bias - October 5, 2012 | Tickers: BODY, RUE, WTSL

    Body Central (NASDAQ: BODY), a lady's apparel retailer catering to women in their teens and twenties, has shot up 24% in the past month. No buyout rumors or hot product lineup seems to have driven this sudden surge. Instead, these four reasons may explain why Body Central's shares rose -- and whether they'll keep rising.

  • Body Central Continues to Struggle

    By William Bias - August 7, 2012 | Tickers: BODY, RUE, WTSL

    In, Is Body Central a Value Trap?, I talked about how Body Central’s (NASDAQ: BODY) 66% decline from its 52 week high to the price of $10.56 on 07/09/12 was a value trap because of a decline in same store sales of 1.4%. It had a total debt to equity ratio of 48% as of the 1st quarter and growth in free cash flow of 54% between fiscal years 2009-2011, which is excellent, but I saw the decline in same store sales as the beginning of a worrisome trend. I also discussed how management didn’t expect any improvement until the holiday season. The earnings announcement that came out on August 2, 2012 is not doing anything to change my mind about the continuation of the worrisome trend. The stock price has dropped another 23% as of close on 08/06/12.

  • Is Body Central a Value Trap?

    By William Bias - July 13, 2012 | Tickers: BODY, RUE, WTSL

    As a value investor I look for companies that have experienced steep declines in stock prices and still have excellent fundamentals such as excellent growth in free cash flow, low debt to equity ratios, and high return on equity. Sometimes a company can fall for a good reason such as threats to the underlying business -- new competitors, declining demand for a product or obsolescence. This is called a value trap. The saying goes if it’s too good to be true then it generally is. If I see a stock price that has fallen then there is a good possibility that there is a good reason for it. >>More