Stone Fox Capital
Long/short equity, growth at reasonable price, research analyst, deep value

Avoid The Deworsification At Ascena Retail Group

The diversification at Ascena Retail Group (NASDAQ:ASNA) appears to impress previous contributors, but the recent results suggest that the configuration of vastly different retail chains has led to the concept known as "deworsification". The recent addition of several retail operations promised greater diversification, but it only appears to add more uncertainty and inability to predict trends around different retail segments such as teens and plus-sized women.

The company is a specialty retailer that operates under the Lane Bryant, Cacique, maurices, dressbarn, Catherines, Justice and Brothers brands. It operates 3,800 stores primarily in the United States.

The question for investors is whether it is best to run these brands under individual corporations or to consolidate them under a single...

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