Topic: Growth Stocks

U.S.A. stock market: How to increase your profits in the U.S. retail sector

The U.S. consumer sector is highly competitive. As well, retailers are more exposed to swings in the overall economy than companies in some other sectors, such as utilities.

However, U.S. consumer stocks also hold the potential for strong gains. To cut your risk and earn higher profits when investing in this volatile sector, it’s especially important to focus on chains that can adapt quickly and prosper in the fast-changing retail landscape.

U.S.A. stock market: Shift to more profitable products pushed up this retailer’s latest results

In the latest issue of Wall Street Stock Forecaster, our newsletter for U.S.A. stock market investing, we’ve updated our advice on a retailer whose share price has shot up more than 63% for us in the past year: Limited Brands Inc. (symbol LTD on New York).

Limited Brands operates two main retail chains: Victoria’s Secret (lingerie) and Bath & Body Works (soaps and bath oils). The company also operates the La Senza chain in Canada and 40 other countries.

The company’s sales and earnings rose sharply in its latest fiscal year. That’s mainly because Limited has been shifting away from clothing and toward more profitable products, such as lingerie and bath soaps. It is also doing a good job of managing its inventories. That cuts the need for costly clearance sales.

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Limited aims to spur its growth by expanding overseas. Right now, it gets just 8% of its sales from outside the U.S. The company feels adding more international stores will help it double its annual sales in the next five years.

For example, Limited recently opened six Bath & Body Works stores in the Middle East. It plans to open 20 more stores in the region this year. Victoria’s Secret also plans to open more boutique stores in airports and tourist areas, as well as a major new store in London, England.

Get our in-depth analysis of Limited Brands and other U.S.A. stock market investments FREE

Expanding overseas opens up a big opportunity for Limited, but also presents significant risks.

In the latest issue of Wall Street Stock Forecaster, we’ve taken a fresh look at the company and updated our analysis, based on Limited’s current financial and market position, and the outlook for its overseas expansion plans. We concluded our analysis with clear, specific advice on whether you should buy, hold—or sell—the stock.

Best of all, you can get this issue absolutely FREE when you take 1-month trial to Wall Street Stock Forecaster today. Your 1-month FREE trial also includes 5 in-depth investment reports our weekly Email/Telephone Hotlines and much more. Don’t wait! Click here to get started right away.

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