CHS, .......
Just doing the math CHS should be $10 easily.
Fom Crains NY
Earnings should triple
With strong earnings and lower debt, Mrs. Chaus believes the company finally has the sound financial base as well as the right fashion formula to make a bigger splash. Earnings for the year ending June 30 are projected to nearly triple to about $11 million, and Mrs. Chaus says the company is looking to achieve a 30% increase in net income next year.
Industry observers praise the decision to add her name to the label, and say the designs have not suffered since Mr. Grossman left.
"Business is very strong," says Kathy Bufano, an executive vice president at Macy's East, adding that the trick is "to continue what they've started."
In addition to honing her own managerial skills, Mrs. Chaus has assembled a strong team of top executives in the last four years, including Judith Leech, vice president of design.
The new marketing efforts should help further the turnaround. Chaus has hired ad agency Frierson Mee + Kraft Inc., whose executives have worked on campaigns for big brands including Calvin Klein.
But Mrs. Chaus has yet to impress Wall Street. Investors remain cool to the stock, given the company's small market cap of about $75 million, with most of the shares in Mrs. Chaus' hands.
The stock is trading at around $2.75, with a multiple of about 5, versus Jones Apparel, with a multiple of 19. |
