Is Ascena The Rare Exception To The Retail Turnaround Rule?
Ascena Retail: The Future Looks Bright
Shaun Currie, CFA
Shaun Currie, CFA
Avoid The Deworsification At Ascena Retail Group
Stone Fox Capital
Stone Fox Capital
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
Mon, May 30, 5:35 PM
Thu, May 19, 2:54 PM
- A number of retail stocks are higher than market averages after Wal-Mart, Dick's, and American Eagle Outfitters all surprise on the upside with earnings.
- Though consumers are clearly adjusting some of their spending habits, companies well-positioned are holding their own (groceries for WMT, bralettes for AEO, and golf for Dick's) compared to expectations.
- Today's movers include Boot Barn (BOOT +7.4%), Ascena Retail Group (ASNA +5.5%), Chico's FAS (CHS +5.8%), Cato (CATO +5.2%), Abercrombie & Fitch ANF, Express (EXPR +4.2%), and Foot Locker (FL +2.4%).
Fri, May 13, 11:25 AM
- Some beat-up mall stocks have overcome a sputtering start to move solidly higher. The names seemed to have reacted to a red-hot read on consumer sentiment from the Reuters/UofM survey.
- Recovery modef: Kohl's (KSS +7.9%), Macy's (M +3%), Dillard's (DDS +2.5%), Gap (GPS +2%), JC Penney (JCP +1.8%), Ascena Retail (ASNA +3.1%), and Christopher & Banks (CBK +2.5%).
- Previously: Retail sales: Consumers spending, just not where they used to (May 13)
- Previously: Retail sales dazzle, retail stocks not so much (May 13)
Wed, May 11, 9:54 AM
- The hits keep coming for the specialty retail sector with L Brands, Gap, and Macy's all reporting troubling sales trends this week which point to a detached U.S. consumer.
- Investors aren't ignoring the broad theme. Decliners today include FTD Companies (FTD -1.6%), Finish Line (FINL -3.5%), Five Below (FIVE -3.3%), Michaels Companies (MIK -1.9%), Zumiez (ZUMZ -4.4%), Urban Outfitters (URBN -5.2%), Ascena Retail Group (ASNA -7.3%), The Children's Place (PLCE -3.8%), and DSW (DSW -3.3%). Most of those losses follow on declines from earlier in the week.
- Related: The new millennials ETF takes a pass on apparel store stocks (May 10)
Tue, May 10, 2:58 PM
- Gap's (GPS -12%) weak report on April sales, which followed shortly after an eye-opening read from L Brands (LB -1.2%), has investors skittish on the apparel store stocks.
- Sector decliners today include Francesca's (FRAN -3.4%), Stein Mart (SMRT -3.5%), Ascena Retail (ASNA -3%), Express (EXPR -2.2%), Buckle, Cato (CATO -2.1%), Abercrombie & Fitch (ANF -2%), Amercan Eagle Outfitters (AEO -2%), Tailored Brands (TLRD -1.3%), and Urban Outfitters (URBN -1.5%)
- Analysts are warning that the lack of overall sales volume and the closing of Aeropostale stores could continue to add to the promotional atmosphere.
- In another sign of the problem that apparel stores are having in driving sales with millennials, the new Global X Millennials Thematic ETF (NASDAQ:MILN) has a top holding of Amazon and very little representation of apparel chain stock stocks (LULU and LB make the list).
Thu, May 5, 10:59 AM
- Apparel store stocks trade lower after one of its stalwarts takes it on the chin. L Brands (NYSE:LB) is down 10.5% with even the resilient Victoria's Secret business showing signs of weakness.
- Notable decliners include Urban Outfitters (URBN -3.4%), Guess (GES -3.7%), Francesca's (FRAN -1.8%), Gap (GPS -2.6%), Genesco (GCO -2.8%), Ascena Retail Group (ASNA -3%), Express (EXPR -2%), and Chico's FAS (CHS -2.4%).
- Buckle (BKE -5.8%) and Abercombie & Fitch (ANF -4.5%) are also down, with the former reporting weak April sale and the latter losing an exec on top of the L Brands development.
Fri, Apr. 15, 9:16 AM
- American Eagle Outfitters (NYSE:AEO) announces that it ended the practice of "on-call" shifts.
- The company says the new policy is being reinforced across the American Eagle store fleet.
- The use of on-call shifts in the retail sector continues to generate significant negative publicity for many chains, and has the Illinois Attorney General along with counterparts in other states asking questions.
- Other companies which are under on-call scrutiny include Carter's (NYSE:CRI), Aeropostale (NYSE:ARO), Coach (NYSE:COH), David's Tea (NASDAQ:DTEA), Justice (NASDAQ:ASNA), Tilly's (NYSE:TLYS), and Uniqlo (OTCPK:FRCOY).
- Now read Should You Buy Retail ETFs Despite Soft Sales?
Fri, Apr. 8, 10:17 AM
- Apparel stocks are getting hammered after Gap's latest monthly sales dud creates a new ripple of worry.
- There's a little bit of a failed feedback loop going on in the sector as teenagers/young adults skip mall visits to spend on other categories while sellers try to innovate their way out of the box. That innovation is leading to excess inventory which in turn leads to more painful discounting
- Decliners include Lululemon (LULU -1.7%), Kate Spade (KATE -1.4%), Deckers Outdoor (DECK -2.5%), Coach (COH -1.6%), Michael Kors (KORS -2.1%), Columbia Sportswear (COLM -1.8%), Carter's (CRI -1.8%), Hanesbrands (HBI -1.3%), Ascena Retail (ASNA -3.9%), Nordstrom (JWN -3.4%), Chico's FAS (CHS -4.2%), Abercrombie & Fitch (ANF -4%), Urban Outfitters (URBN -2.6%), L Brands (LB -3%), Express (EXPR -2.4%), Guess (GES -2.9%), Tailored Brands (TLRD -1.9%) and Zumiez (ZUMZ -2.8%).
- Now read Sell Your Apparel Stocks
Thu, Mar. 31, 11:52 AM
- Ascena Retail Group (NASDAQ:ASNA) gave a presentation today on the direction of its Justice brand.
- The company says it can pull off a higher margin rate even as it drops prices by avoiding the clearance channel.
- On one of the key slides, Ascena tips that it plans to eliminate Justice all-store promotional events.
- Justice is delivering results in-line with expectations so far this spring season.
- SEC filing on the presentation
- Now read Is Ascena The Rare Exception To The Retail Turnaround Rule?
Wed, Mar. 2, 10:40 AM
- Ascena Retail Group (ASNA -12.4%) is peeling off some gains it piled up before it reported earnings yesterday.
- The company improved its gross margin rate in Q4 with some help from Ann and Justice. Though Ascena backed its guidance for full-year EPS of $0.75-$0.80 vs. $0.74 consensus, the view for Q1 EPS of $0.10-$0.14 is short of the consensus mark of $0.19.
- Despite today's sharp drop, shares of Ascena are back to where they stood about two weeks ago.
Tue, Mar. 1, 4:18 PM
Mon, Feb. 29, 5:35 PM
Ascena Retail Group, Inc. engages in the retail of women's clothing, shoes, and accessories stores. It operates through the following segments: Justice, Lane Bryant, Maurices, Dressbarn and Catherines. The Justice segment creates designs and develops its own exclusive Justice branded merchandise... More
Industry: Apparel Stores
Country: United States
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