Ascena Retail: Gross Margin Improvements Not Outrunning Woeful Comps
Is Ascena The Rare Exception To The Retail Turnaround Rule?
Tue, Sep. 20, 12:43 PM
Tue, Sep. 20, 11:35 AM
- Apparel store stocks are trading soft after a brutal cut in guidance from Ascena Retail Group (ASNA -26%) cast a shadow over the group.
- During Ascena's earnings call, CEO David Jaffe said a "highly competitive selling environment" and "significant store traffic headwinds" were tough to overcome.
- Former bulls FBR, Oppenheimer, and RBC Capital Market all abandoned their positive ratings on Ascena. While no Wall Street firms were out with a Sell rating on Ascena this summer in front of the earnings dud, SA contributor Terrier Investing issued a warning in June.
- Decliners today include Tilly's (TLYS -8%), Bebe Stores (BEBE -3.5%), Stage Stores (SSI -2%), Express (EXPR -2.1%), Chico's FAS (CHS -1.5%), and Destination XL Group (DXLG -1.7%).
Tue, Sep. 20, 9:19 AM
Mon, Sep. 19, 5:38 PM
Mon, Sep. 19, 5:32 PM
- Shares of Ascena Retail (NASDAQ:ASNA) are down sharply after FQ4 earnings and updated guidance disappoint investors.
- Ongoing store traffic headwinds have pushed quarter-to-date comparable sales negative in the current quarter after they fell 4% in FQ4.
- The company expects FY17 revenue of $6.9-$7.0B vs. $7.17B consensus and FY17 EPS of $0.60-$0.65 vs. $0.83 consensus.
- Previously: Ascena Retail Group misses by $0.08, beats on revenue (Sept. 19)
- ASNA -24.01% AH to $6.17.
Mon, Sep. 19, 4:09 PM
Sun, Sep. 18, 5:35 PM| Sun, Sep. 18, 5:35 PM
Fri, Sep. 9, 9:27 AM
- A survey from William Blair indicates that teenagers and young adults have increased their visits to malls this year to reverse a multi-year trend.
- In what may come as a surprise, teens ranked malls above movie theaters, restaurants, and sports clubs/extracurriculars as their most popular place to meet.
- Despite the depressed levels of overall sales this year for mall retailers, the read on teens could be a possible indicator that the mall model will evolve and survive, instead of disappear.
- "While overall mall traffic remains challenging, our survey this year noted a material increase in the number of respondents who indicated they are visiting malls more often than last year, perhaps suggesting that malls’ efforts to increase relevancy (through more experiential brands and the addition of attractive entertainment and dining options) are beginning to bear fruit," says Bernstein analyst Sharon Zackfia.
- Mall retailers: AEO, ANF, ASNA, BKE, BOOT, CATO, CBK, CHS, CTRN, DSW, EXPR, FRAN, GCO, GES, GPS, LB, NWY, PLCE, SCVL, SMRT, SSI, TLYS, URBN, LULU.
Tue, Aug. 30, 12:53 PM
- A warning from Abercrombie & Fitch (ANF -20.6%) on second-half comparable sales is resonating across the jittery apparel store sector, along with weak reports from DSW (DSW -10.3%) and Christopher & Banks (CBK -19.7%).
- Ascena Retail Group (ASNA -6.6%), Stage Stores (SSI -5.1%), Guess (GES -3.8%), Chico's FAS (CHS -3%), and Francesca's (FRAN -2.8%) are all notably lower after the gloomy sector updates.
- Previously: Abercrombie & Fitch falls hard after weak outlook (Aug. 30)
- Previously: Sales fall short at Christopher & Banks (Aug. 30)
- Previously: DSW sets in-line profit guidance (Aug. 30)
Wed, Aug. 17, 2:49 PM
- Shares of Ascena Retail Group (ASNA +1.1%) have been tracking higher this week after a review of 13F filings showed that money managers increased their positions in the stock during Q2.
- Most notable was the extra buying from Stadium Capital Management which took its position up to a 7.63% stake.
- Women's Wear Daily reports that 101 firms increased their position in Q2 to outpace the 78 that lightened up.
- ASNA is up 11% for the week.
Thu, Aug. 11, 9:59 AM
- The retail sector is racking up sizable gains after Macy's set the table with a major store closing announcement (15% of full-line stores).
- Earnings beats at Macy's and Kohl's, along with a surprise upgrade on American Eagle Outfitters (AEO +4.6%) are also helping to boost sentiment.
- Notable gainers include Guess (GES +4.3%), Dillard's (DDS +5.8%), Ascena Retail Group (ASNA +4.6%), Stage Stores (SSI +7.7%), Sears Holdings (SHLD +4.6%), Gap (GPS +3.5%), Abercombie & Fitch (ANF +3.2%), Barnes & Noble (BKS +3.2%), Urban Outfitters (URBN +1.3%), Francesca's (FRAN +2.5%), DSW (DSW +3.5%), Pier 1 Imports (PIR +4%), and Finish Line (FINL +2.4%).
- The S&P 500 Retail ETF (NYSEARCA:XRT) is up 2.1% on the day off the chain store buzz.
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, FXD, IYC, FDIS, SCC, RCD, UCC, PMR, JHMC, CNDF
Tue, Aug. 9, 1:36 PM
- There's a dark mood in the apparel store sector after Gap (GPS -6.4%) spilled its July sales numbers.
- The retailer's 4% drop in comparable store sales for the month missed the -1% mark expected by analysts by a wide margin. Gap had raised hopes for a retail sector comeback with a return to a positive comp in June before the July disappointment.
- On a prerecorded sales call (855-500-0477 participant code 7405599), Gap management dropped a discouraging nugget: "We’re maintaining a cautious view of the retail environment in the second half."
- As a bit of a bellwether, the outlook from Gap is resonating across the retail sector. There's also a cut on same-store estimates for Target from Cleveland Research which could be drawing some attention.
- Retail decliners: Tailored Brands (TLRD -5.5%), Ascena Retail Group (ASNA -4.7%), Express (EXPR -4.4%), Citi Trends (CTRN -3.3%), Buckle (BKE -3.4%), Cato (CATO -3.3%), American Eagles Outfitters AEO, Abercrombie & Fitch ANF, Chico's FAS (CHS -2.6%), Kohl's (KSS -3.7%), Dillard's (DDS -2.9%), Macy's (M -2.4%), Fred's (FRED -3.3%), Target (TGT -3.1%), Tuesday Morning (TUES -1.5%), L Brands (LB -1.9%), Christopher & Banks (CBK -2.6%).
Thu, Jun. 9, 12:23 PM
- Retail stocks are broadly lower after a weak earnings report from Restoration Hardware (RH -21.2%) set a gloomy tone. The S&P Retail ETF (NYSEARCA:XRT) is 1.91% lower on the day.
- Williams-Sonoma (WSM -4.8%) and Bed Bath & Beyond (BBBY -3.7%) are down sharply after the RH guidance dud.
- Mall chain and department store stocks are also seeing some anxious trading as investors continue to bet on discounters and variety stores which target budget shoppers.
- Notable decliners include Ascena Retail (ASNA -5.4%), Guess (GES -3.2%), Nordtrom (JWN -3.1%), Urban Outfitters (URBN -2.6%), Cato (CATO -2.6%), DSW (DSW -2.6%), and Gap (GPS -2%).
- Target (NYSE:TGT) is down 1.6% after a rough annual meeting where there was much more attention paid to the company's transgender bathroom policy than execs probably desired.
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, FXD, FDIS, RCD, PMR, JHMC, CNDF
Wed, Jun. 1, 9:14 AM
Tue, May 31, 5:37 PM
Tue, May 31, 4:15 PM