6 Apparel Stocks With Falling Receivables Turnover Ratios

Screen Criteria:

List of Apparel stocks with falling accounts receivable turnover ratios.

Average Weekly Returns:

Average 1-Week Return of All Stocks Mentioned Below: 2.24%

Average 1-Month Return of All Stocks Mentioned Below: -0.02%

Analysis of List Alpha:

Number of Stocks in This List Generating Excess Return vs. SP500 (Beta Adjusted Over Last Week): 4 out of 6 (66.67%)

Number of Stocks in This List Generating Excess Return vs. SP500 (Beta Adjusted Over Last Month): 2 out of 6 (33.33%)

Chart: Distribution of 1-Week Returns For All Stocks Mentioned Below


Chart: Distribution of 1-Month Returns For All Stocks Mentioned Below


(List sorted by monthly performance, from best to worst)

1. Perry Ellis International Inc. (PERY): Engages in designing, sourcing, marketing, and licensing apparel products for men and women in the United States and internationally. Size of receivables grew by 3.44% during the most recent quarter ($154.95M vs. $149.79M y/y), while revenue only increased by -4.90% ($236.25M vs. $248.42M y/y). Accounts Receivable, as a percentage of current assets, increased from 36.83% to 39.44% during the most recent quarter (time interval comparison 3 months ending 2012-10-27 to 3 months ending 2011-10-29).

2. Gildan Activewear Inc. (GIL): Gildan Activewear Inc. manufactures and sells T-shirts, activewear, underwear, and socks to wholesale screen printers, embroiderers, and retailers in North America, Europe, and internationally. Size of receivables grew by 35.83% during the most recent quarter ($260.95M vs. $192.11M y/y), while revenue only increased by 16.61% ($561.65M vs. $481.63M y/y). Accounts Receivable, as a percentage of current assets, increased from 21.94% to 28.5% during the most recent quarter (time interval comparison 13 weeks ending 2012-09-30 to 13 weeks ending 2011-10-02).

3. China Xiniya Fashion Limited (XNY): Engages in the design and manufacture of men’s business casual and business formal apparel and accessories. Size of receivables grew by 58.82% during the most recent quarter ($506.74M vs. $319.06M y/y), while revenue only increased by 15.74% ($417.94M vs. $361.09M y/y). Accounts Receivable, as a percentage of current assets, increased from 22.56% to 28.87% during the most recent quarter (time interval comparison 3 months ending 2012-09-30 to 3 months ending 2011-09-30).

4. Delta Apparel Inc. (DLA): Operates as an international design, marketing, manufacturing, and sourcing company that features a portfolio of branded and private label activewear apparel and headwear. Size of receivables grew by 14.66% during the most recent quarter ($76.57M vs. $66.78M y/y), while revenue only increased by 5.34% ($130.11M vs. $123.52M y/y). Accounts Receivable, as a percentage of current assets, increased from 25.62% to 30.87% during the most recent quarter (time interval comparison 13 weeks ending 2012-09-29 to 13 weeks ending 2011-10-01).

5. K-Swiss Inc. (KSWS): Engages in the design, development, and marketing of athletic footwear for sports use, fitness activities, and casual wear. Size of receivables grew by -9.77% during the most recent quarter ($39.07M vs. $43.3M y/y), while revenue only increased by -16.05% ($67.55M vs. $80.46M y/y). Accounts Receivable, as a percentage of current assets, increased from 20.28% to 26.28% during the most recent quarter (time interval comparison 3 months ending 2012-09-30 to 3 months ending 2011-09-30).

6. Exceed Company Ltd. (EDS): Engages in the design, development, and wholesale of footwear, apparel, and accessories in the People’s Republic of China. Size of receivables grew by 51.07% during the most recent quarter ($182.28M vs. $120.66M y/y), while revenue only increased by -47.32% ($88.03M vs. $167.09M y/y). Accounts Receivable, as a percentage of current assets, increased from 42.68% to 60.02% during the most recent quarter (time interval comparison 3 months ending 2012-09-30 to 3 months ending 2011-09-30).

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