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Body Central Still Bouncing Off The Bottom

Small-Cap Insight

After an extremely weak year, has Body Central (BODY) finally hit bottom? The women's fashion retailer started off with good results in 2011 after an IPO at the end of 2010. The company though constantly revised down expectations in 2012 while competitors such as Francesca's Holdings Corp (FRAN) managed to continue growing at a fast pace.

The company is a multi-channel, specialty retailer of woman's fashion providing quality apparel at affordable prices. It operates 281 specialty apparel stores in 26 states under the Body Central and Body Shop banners.

With the stock plunging from near $30 at the peak back in 2012 to the current price of $12.50, the question remains whether the company can regain that stock price. With a market cap of only $200 million, Body Central appears destined for a significantly higher market valuation with any type of turnaround. As a sign of the potential, Francesca's has a similar revenue base, but the market valuation is nearly 6x the size at $1.2 billion.

Read the full article at Seeking Alpha.


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