Wilsons is the leading US leather retailer, selling men's and women's outerwear, apparel, and accessories under the Pelle Studio, Maxima, M. Julian, and Wilsons brand names. It operates more than 570 stores in 44 states, Canada, and the UK, including some 460 mall locations, 30 airport stores (Wilsons The Leather Experts), and about 70 Wallet Works outlet stores. Additionally, the company operates about 240 temporary stores and kiosks during the holiday season. Wilson purchased 38-store travel products retailer El Portal in late 2000. The family of leather scion Lyle Berman (CEO of Rainforest Cafe and Lakes Gaming) owns 20% of Wilsons.
The Company, which regularly supplements its permanent mall stores with temporary holiday stores during its peak selling season from October through January, operated 239 holiday stores in 2000. The Company's e-commerce site at www.wilsonsleather.com offers leather apparel and accessories, as well as Company background and financial information. A second e-commerce site at www.travelsupplies.com offers travel products and accessories.
In March, WLSN announced that fiscal fourth-quarter net income rose 17.9 percent as sales increased 20 percent despite an overall weak retail environment. In April, Wilson reported a 34% Increase in March Sales and comparable Store Sales Increased by 7.9% as compared to a 7.6% decrease last year.
Wilsons said it is positioned for at least 20 percent growth in sales and earnings this fiscal year and expects to open 80 new stores, net of closings. The company posted net income of $41.9 million and sales of $636.9 million in the year ended Feb. 3.
Wilson's is benefiting from fashion trends towards leather. The company currently is trading at a very low valuation level(PE under 7) – primarily due to the seasonal nature of its earnings. WLSN historically looses money during the first three-quarters and then makes it up during the fourth quarter. Management is trying to smooth earnings out going forward. The recent move to acquire Bentley Luggage Corporation in April serves to further diversify Wilsons Leather's overall business, as well as moderate its financial seasonality.
The only negative with WLSN shares is the chart, several times historically WLSN has hit $20 and then been taken down. If WLSN can go above $20, I are looking for a break out. WLSN shares are fairly volatile since there is very little liquidity. Insiders hold 48% of the stock. |
