Investment Q&A

GRGD has been a solid operator in the women’s apparel industry under brand names such as Dynamite and Garage. GRGD has demonstrated solid execution by reaccelerating topline growth in recent quarters. The company is trading at 29x forward P/E and is expected to grow at a rate above 15% over the next few years. Overall, business momentum is strong, and we think the company will do just fine three or even five years from now. With that said, 10 years could be a long time to make a confident statement for GRGD due to the competitiveness of the industry. For instance, LULU and NKE were once great brands that have struggled recently. Overall, we think GRGD’s prospects look quite promising. Its same store sales growth has been most impressive, though, and we would consider GRGD to be a BUY today.