Soleil Securities Comments on Retailers Jo-Ann Stores (JAS) and Collective Brands (PSS)

December 3, 2008 1:54 PM EST

Soleil Securities makes comments on Jo-Ann Stores (NYSE: JAS), Collective Brands (NYSE: PSS) :

Soleil analyst says, "Jon-Ann (JAS) has outperformed its peers YTD through a combination of improved execution and market share gains vs. its key direct competitors in fabrics and crafts. We expect these trends to continue through holiday and potentially accelerate entering C09 as the pace of industry consolidation is stepped up...The correction in the shares since mid-September represents an excellent buying opportunity, in our opinion."

Jo-Ann Stores, Inc. is a specialty retailer of fabrics and crafts, serving customers in their pursuit of apparel and craft sewing, crafting, home decorating and other creative endeavors.

Soleil analyst says, "We expect Collective Brands (PSS) to continue to outperform its most direct peer group, family footwear chains. Over the past three years, management's strategy to upgrade product quality and cut costs is paying off, although investors are presently assigning little or no premium to superior performance in the retail sector...We see validation of the "trade-down" thesis and unfreezing of credit markets as potential near term catalysts that could boost performance of the shares."

Collective Brands, Inc. (Collective Brands), formerly known as Payless ShoeSource, Inc., is the holding company for Payless ShoeSource, Inc. (Payless), The Stride Rite Corporation (Stride Rite), and Collective International, LP (Collective Licensing). [SM]

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