Management has cut costs across every area, and as the economy recovers the company has potential to grow to 800 stores from 300, Maschmeyer said.
Its wide assortments and limited quantities of unique styles encourage customers to buy now because the item they like might be gone in two weeks, she said. Anthropologie stores in particular have been adding more unique items and reducing more widely available items, Maschmeyer said.
The company is growing its higher-margin private label brands, has secured vendor cost reductions and is implementing new software that should help get products to stores more quickly, she said. The biggest risks are that consumer discretionary spending could falter or the company could get a fashion trend wrong, Maschmeyer said. She says the shares could go as high as $32 over the next 12 months.