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, 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)
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. 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
Tue, Mar. 1, 4:18 PM
Mon, Jan. 4, 11:11 AM
- Ascena Retail Group (ASNA +2.6%) is solidly higher, despite today's sharp global market declines.
- Some late 2015 insider buying is helping to lift sentiment on the retail stock.
- Ascena isn't due to report FQ4 earnings until early March when the company's holiday period sales and Ann integration will be closely analyzed.
- SEC Form 4
Dec. 15, 2015, 5:41 PM
Dec. 15, 2015, 4:50 PM
- Ascena Retail (NASDAQ:ASNA) is higher after the company announced a new $200M share buyback program.
- The new plan replaces a prior authorization with a balance of $90M in it.
- Ascena says it will remain on track with commitments made to ratings agencies even with the extra buyback firepower.
- ASNA +4.6% AH.
Dec. 2, 2015, 10:15 AM
- Ascena Retail Group (ASNA +4.8%) trades higher after reporting a stronger bottom line than expected for FQ1.
- FQ1 comparable-store sales by brand: Justice -15%, Lane Bryant +4%, Maurices +7%, Dressbarn -5%, Catherines -1%.
- Comparisons of margin rates for the quarter were impacted by the acquisition of Ann. If some Ann-related purchase accounting adjustments are backed out, gross margin actually improved compared to a year ago despite pressured sales.
- The company calls its Black Friday/Cyber Monday performance "mixed" across its portfolio.
- Previously: Ascena Retail Group beats by $0.07, misses on revenue (Dec. 01 2015)
Dec. 2, 2015, 9:15 AM
Dec. 1, 2015, 5:34 PM
Nov. 13, 2015, 1:09 PM
- Retailers are under pressure after the Census Bureau reported October retail sales rose 0.1% M/M, and core retail sales 0.2%. Consensus was respectively 0.3% and 0.4%.
- Also: J.C. Penney is down 13.6% in spite of posting a Q3 beat and reiterating its full-year same-store growth guidance, and Nordstrom is down 15.4% after missing FQ3 estimates and cutting its FY16 guidance.
- In addition to Target, TJX, Macy's, and Kohl's (previously covered), notable decliners include Ross (ROST -5.7%), Skechers (SKX -3.9%), Michael Kors (KORS -4.8%), Deckers (DECK -4.2%), Gap (GPS -4.1%), Ascena Retail (ASNA -4.6%), American Eagle (AEO -4.5%), Urban Outfitters (URBN -4.8%), Stein Mart (SMRT -5.4%), Citi Trends (CTRN -4.4%), Guess (GES -5.9%), Abercrombie & Fitch (ANF -5.7%), Chico's FAS (CHS -4.3%), and New York & Company (NWY -6%).
- Retail stocks were also under pressure on Wednesday after Macy's cut its 2015 guidance.
- ETFs: IYK, PEJ, IYC, SCC, UGE, SZK, XLY, XRT, VCR, RTH, RETL, FXD, FDIS, RCD, PMR
Nov. 6, 2015, 11:16 AM
- Apparel store stocks are weaker on more reports of higher wage levels and a string of earnings duds in the sector.
- Men's Wearhouse (NYSE:MW) is the headliner with a 44% slide after reporting weak sales, although 22 out of 24 apparel store stocks with a market cap of over $300M are bleeding today.
- Margins are a big concern in the sector as sales deleverage plays in and a higher mix of e-commerce chips away.
- Other notable declines include Stein Mart (SMRT -5.4%), Ascena Retail (ASNA -5.5%), The Children's Place (PLCE -4.8%), Shoe Carnival (SCVL -2.2%), Buckle (BKE -2.1%), Francesca's (FRAN -1.9%).
Oct. 8, 2015, 5:38 PM
Oct. 8, 2015, 5:15 PM
- Ascena Retail (NASDAQ:ASNA) +5.3% AH after Golden Gate Capital discloses a 9% stake in the apparel retailer and says it is engaged in early discussions on ways to create value for shareholders.
- The P-E firm, which has a long track record as an investor in retailers, says it hopes to help ASNA achieve its “substantial potential as a public company,” but it is not yet making other demands.
- Golden Gate beneficially owns 17.5M shares in the company, making it the largest shareholder.
Oct. 8, 2015, 10:20 AM
- The apparel sector is out-gaining market averages as sentiment swings positive. There's been some analysis suggesting that apparel sellers will benefit from the Trans-Pacific Partnership on the cost side. Lower cotton and oil prices are also working in the favor of apparel companies, although hedging against the strong U.S. dollar is an ongoing risk.
- On the manufacturing side: G-III Apparel (NASDAQ:GIII) +2.6%, Columbia Sportswear (NASDAQ:COLM) +2.1%, Michael Kors (NYSE:KORS) +1.8%, PVH Corp. (NYSE:PVH) +1.6%, Ralph Lauren (NYSE:RL) +1.4%.
- On the chain store side: Cato (NYSE:CATO) +5.1%, Ascena Retail (NASDAQ:ASNA) +3.4%, American Eagle Outfitters (NYSE:AEO) +3.4%, Abercrombie & Fitch (NYSE:ANF) +3.1%, Francesca's Holdings (NASDAQ:FRAN) +2.6%, L Brands (NYSE:LB) +2.1%.
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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