Josh Arnold
Long/short equity

Ascena Retail Group's Diversification And Growth Mean Big Upside

Ascena Retail Group (NASDAQ:ASNA) is a specialty retailer of apparel for women and "tween" girls (preteen to the rest of us). The company's retail store brands include Justice, Lane Bryant, maurices, dressbarn and Catherines. The company operates approximately 3,800 total retail stores in the US, Puerto Rico and Canada and last year completed its $900 million acquisition of Charming Shoppes, whereby it acquired the Lane Bryant and Catherines chains. Sentiment on the name is diving as continued assimilation costs have occurred since the Charming Shoppes acquisition but I intend to argue here that ASNA is a very profitable, growing retailer that is too cheap at $18 per share.

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In order to figure out what ASNA...

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