Analyst Brian Tunick says earnings per share were a bit better than expected. He notes margins are slowly recovering, and says the fourth quarter represents an inflection point relative to trend.
Tunick cited strong suit unit comp trends and strong tuxedo revenue. He expects the tuxedo revenue rental business to drive operating margins higher. He is keeping his $1.22 for fiscal 2004 (Jan) earnings per share estimate, and his mid-teen price target. He says Thursday's spike in the share price is a short cover rally. In the short term, he thinks $14-$16 is a fair price range for the retailer.