5 Well-Dressed Retail Stocks for 2010

Dress Up Your Portfolio With
These Retail Stocks

“Dress for success,” “clothes make the man,” “when you look good you feel good.”  We’ve all heard
these clichés throughout the years, and while these phrases may be trite, the sympathies behind them still hold true. From teenage girls to
distinguished gentlemen and everyone between, nearly everyone takes pride in being well-dressed.

Of course, as investors we all want well-dressed portfolios, too, so why not achieve both of these objectives at the same time?

The following retail stocks can not only make you look good, they can make your portfolio look even better. Now let’s slip into something
a little more comfortable and take a closer look at each of these five well-dressed retail stocks for 2010.

NEXT – Abercrombie & Fitch (ANF)

Retail Stock #1 –
Abercrombie & Fitch (ANF[2])

Preppy, sexy and often controversial; it’s what teen retailer Abercrombie & Fitch (ANF[2])
makes its living on. The trendy look of its merchandise, along with a healthy dose of the “cool” factor, makes this store a go-to place
for fashion-focused teens. 

ANF clothes don’t come cheap when compared to the competition’s, and that’s because the retailer wants its customers to feel like
they’re members of the privileged class. So far, this formula has worked well for ANF, even in the midst of a recession. As the economy continues
recovering in 2010, look for ANF to add to both its top and bottom lines. And, of course, look for the stock to make a fashion statement as well.

NEXT – Chico’s FAS (CHS)

Retail Stock #2 –
Chico’s FAS (CHS[3])

In Spanish, the word “chico” literally means small. But there was nothing small about retailer Chico’s (CHS[3])
most recent quarterly earnings. The revamped and made-over women’s clothing chain put an end to its recent string of declining quarters by posting
a sales increase of 13% for the third quarter easily besting consensus Street earnings estimates.

Fashion mavens have noticed that the company now is offering many new and updated fashion choices. This is true not only of Chico’s stores,
but also of the company’s White House/Black Market and Soma Intimates chains. Chico’s stellar third-quarter earnings could be a harbinger
of things to come, especially if the fashion-conscious 40-something women the company caters to begin regarding the stores as the “in” place
to shop.

NEXT – Guess? (GES)

Retail Stock #3 – Guess? (GES[4])

Fashion retailer Guess? (GES[4]) left no question about how well
it has performed of late.  The company just posted better-than-expected
third-quarter earnings of 69 cents per share. The Street was expecting earnings to come in at just 50 cents per share. An earnings beat like that
is always going to shake up Wall Street’s runways, and that’s exactly what happened to GES shares after posting the big results.

But the real good news for Guess came via its fourth-quarter outlook. The company said it expects revenue of $585 million to $605 million on earnings
of 77 cents to 80 cents per share. Those numbers are well above analyst expectations for revenue of $563.8 million, and earnings of 69 cents per share
in the all-important holiday quarter. If Guess can keep up this kind of performance in 2010, look for the shares to continue draping the well-dressed
investor.

NEXT – Jos. A. Bank Clothiers (JOSB)

Retail Stock #4 –
Jos. A. Bank Clothiers (JOSB[5])

Whether you’re a young professional coming up in the world, or just a businessman who appreciates a good sartorial value, Jos. A.
Bank Clothiers Inc. (JOSB[5]) is a great place to do your shopping. The
men’s apparel, footwear and accessories retailer operates 474 stores in 42 states and the District of Columbia, giving them a presence in nearly
every major U.S. business center. 

The company has done very well of late, posting a 26% increase in third-quarter profits.  This was the 14th consecutive quarter that profits
have risen from prior-year levels. Moreover, the all-important same-store sales for stores open at least a year also increased, proving that the company’s
business model is performing well. If the company continues delivering solid performance in 2010, JOSB shares are likely to spiff up any well-dressed
portfolio.

NEXT – Nordstrom (JWN)

Retail Stock #5 – Nordstrom (JWN[6])

Anyone who has ever been to a Nordstrom (JWN[7]) department store
knows firsthand that the service this store provides is about as good as it gets. Top-shelf customer attention combined with high-end merchandise
equal a fantastic shopping experience. Sure, you’ll pay a little more for the quality and service this store provides, but that hasn’t
stopped Nordstrom from shining.

In fact, the company’s November
2009 same-store sales were up 2.2%, and preliminary retail sales figures show $749 million for the month. That’s an increase of 5.9% compared
with total retail sales for the same period a year ago. Nordstrom is perhaps the best all-around stock in our well-dressed portfolio for 2010, as
it offers teen fashions and both men’s and women’s casual wear and business attire. If you want to cover all your clothing bases in 2010,
then this is the well-dressed portfolio stock for you.