The Most Profitable Stores in America

24/7 Wall St.: The Most Profitable Stores in America

The past few years have been challenging for the retail industry, and there are no signs that 2012 will be any different. One key metric used to judge the health of a store is sales per square foot. Research company RetailSails recently ranked U.S. stores based on this metric. 24/7 Wall St. analyzed common features found among the retailers that managed to get top dollars per square foot.

Which stores made the list? Read on to find out.

(AP Photo/Jeff Chiu)

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The Most Profita... The past few years have been challenging for the retail industry, and there are no signs that 2012 will be any different. One key metric used to judge the health of a store is sales per square foot. Research company RetailSails recently ranked U.S. stores based on this metric. 24/7 Wall St. analyzed common features found among the retailers that managed to get top dollars per square foot.

Which stores made the list? Read on to find out.

(AP Photo/Jeff Chiu)
6. GameStop Sales per square foot: $1,021
(not on RetailSails list)
Revenue/net income (millions): $9,665 /$403
Gross margin: 27.3%
2011 stock price change: 5.5%

The world’s largest video game retailer does not have the high growth rates the other retailers on this list have. It does, however, have over 6,600 locations. GameStop (NYSE: GME) has a stronghold on the used game market, which produces much better profit margins than new hardware or software. The company will have to stay focused as increasing competition tries to move in on that segment. Its most powerful competition may not be other video game retailers. More and more games are now directly downloaded to and played on smartphones and tablet PCs.

(AP Photo/Paul Sakuma)

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5. True Religion... Sales per square foot: $1,096
(No. 9 on RetailSails fastest growing list)
Revenue/net income (millions): $420/$45.0
Gross margin: 64.8%
2011 stock price change: 55.3%

True Religion Apparel (NASDAQ: TRLG) has grown from its 2002 founding into a $420 million global company with distribution in 50 countries. The company has grown in a niche market, as its average selling price of jeans in the full price stores reached $260 in the fourth quarter of 2011. True Religion also sells its products through other major retailers, which include department store Neiman Marcus and Nordstrom (NYSE: JWN).

(AP Photo/Lynne Sladky)

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4. Lululemon Ath... Sales per square foot: $1,800
(No. 8 on RetailSails fastest growing list)
Revenue/net income (millions): $875 /$165
Gross margin: 57.6%
2011 stock price change: 36.3%

Another relative newcomer to retailing, Lululemon Athletica (NASDAQ: LULU) is a yoga-inspired athletic apparel company, which shared its first retail space with a yoga studio. The firm was founded in 1998 in the Canadian city of Vancouver. Revenue has soared recently, and doubled between the firm’s fiscal 2009 and fiscal 2011 years. Lululemon recently raised guidance for fourth-quarter sales and earnings.The retailer only has over 150 stores and has opened several a month for the past year, so it is likely to be able to continue to grow.

(AP Photo/Gary Malerba)

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3. Coach Sales per square foot: $1,824
(not on RetailSails list)
Revenue/net income (millions): $4,481/$951
Gross margin: 72.3%
2011 stock price change: 10.4%

Best known for its high-end leather handbags, Coach (NYSE: COH) also sells wallets, shoes and novelty accessories. Its primary markets are the U.S. and Japan, which account for almost 90% of sales. One of the examples of the international growth of Coach is that it has individual e-commerce sites in 21 different companies.

(AP Photo/Jeff Chiu)

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2. Tiffany Sales per square foot: $3,085
(No. 25 on RetailSails growth rate list)
Revenue/net income (millions): $3,557 /$442
Gross margin: 59.2%
2011 stock price change: 6.4%

Diamonds are small and pricey, so it should come as no surprise to that a luxury jeweler is on a list featuring sales per square feet. Tiffany (NYSE: TIF) opened its first store in 1837. The luxury jeweler is well known for its Tiffany Blue color, association with Hollywood films and its flagship Fifth Ave store, which is one of the most expensive locations in the world for a retail store. In contrast to Apple, which is a relatively new retail brand, Tiffany has been in business since 1937.

(AP Photo/Paul Sakuma, file)

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1. Apple Sales per square foot: $5,647
(No. 5 on the RetailSails top 25 growth list)
Revenue/net income (millions): $127,841 /$32,982
Gross margin: 42.4%
2011 stock price change: 25.6%

Apple (NASDAQ: AAPL) is a relative newcomer to the retail scene, with its first store opening in 2001. The stores, which feature genius bars for providing advice and repairs, have become a mecca for its fans. It is not uncommon to see die-hard fans lining up outside the stores, sometimes for dasy, before a new product launch. In the latest quarter alone, Apple sold 37 million iPhones through all its sales channels. Broader signs of Apple’s success are that its global revenue rose 73% to $46.3 billion, and its $477 billion market capitalization, which is the highest of any public company in the world.

(AP Photo/Junji Kurokawa)

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