"90's Retrograde" Merger Arb With Rue21
Chris DeMuth Jr. • 60 Comments
Chris DeMuth Jr. • 60 Comments
Jul. 3, 2014, 9:38 AM
- Keep an eye on specialty retailers, advises Topeka Capital's Dorothy Lakner.
- A nice pickup in retail demand in May could be followed up by more strength in June with the economy stable, says the analyst.
- If the stock market keeps moving higher and a potentially-disruptive West Coast port lockout can be avoided, the sector could be set for gains heading into the back to school and fall season.
- Looking for a comeback: EXPR, RUE, ZUMZ, PSUN, ARO, AEO, ANF, CACH, BODY, CHS, CWTR, NWY, BEBE, ANN, CBK, GPS, GES.
Jan. 14, 2014, 5:19 PM
- Specialty retail categories are where e-commerce has had the strongest impact on brick-and-mortar stores, concludes Re/code after scanning sales charts.
- While food and healthcare categories show lower e-commerce penetration as consumers only slowly pivot away from their traditional buying habits - retailers that sell clothing (EXPR, RUE, ZUMZ, PSUN, AEO, CACH, BODY, CHS, CWTR, NWY, BEBE, ANN, CBK) , sporting goods (HIBB, CAB, BGFV), and electronics (BBY, RSH) continue to lose market share to online sellers at an astonishing pace that shows little signs of slowing down.
- Demographics aren't working in the favor of the trend reversing itself either as more teens show a tendency to favor online upstarts such as Nasty Gal or Stitch Fix over former mall rat favorites like Gap (GPS), Aeropostale (ARO) or Abercrombie & Fitch (ANF). The younger set is also attuned to deal-shopping and buying used products online which are margin killers in the electronics category.
- Re/code sees at least two companies that don't mind the e-commerce evolution: FedEx (FDX) and UPS (UPS) could get busier and busier.
Oct. 15, 2013, 11:05 AM
- The latest read on retail sales for October showed a decent 3.2% Y/Y gain, but it's how the industry got there that could be a concern.
- Rebook says promotional activity picked up as apparel retailers looked to clear inventory ahead of the holiday season.
- Specialty retailers (EXPR, RUE, ZUMZ, PSUN, ARO, AEO, ANF, CACH, BODY, CHS, CWTR, NWY, BEBE, ANN, CBK) in particular have been increasing markdowns and discounting activity in Q4 as they clear space for winter lines.
Oct. 10, 2013, 1:16 PM
- The acquisition of Rue21 (RUE) by funds advised by Apax Partners has been completed at the appointed $42 per share.
- The buyout ended up leaving a few investment banks scrambling when Rue21's sales slump affected debt pricing.
- Analyst think the fallout could mean a more conservative stance by bankers in future retail M&A deals.
Oct. 10, 2013, 9:11 AM
- Mall-based retailers reported a slew of disappointing monthly sales reports this morning with Zumiez (ZUMZ), Buckle (BKE), and American Apparel (APP) all showing a monthly decline in comparable store sales during September while L Brands (LTD) scrounged out a 1% gain but missed estimates.
- Gap (GPS) reports its monthly tally after the bell, but the overall weakness in retail already shown could tip sentiment.
- On watch: AEO, ANF, CHS, URBN, TLYS, PSUN, WTSL, EXPR, RUE.
Oct. 2, 2013, 10:50 AM
Sep. 20, 2013, 7:04 AM
- While Rue21 (RUE) shareholders approved the buyout by Apax Partners by a wide margin, it's the P-E firm itself which might be the one with second thoughts.
- During its last quarter, the retailer saw same-store sales decline 5.9% and profits crumble.
- Halper Capital Management estimates Rue21 is worth only half what Apax paid for it.
- The potential retail buyout bomb could have some bearing on how Sycamore Partners handles its investment in Aeropostale (ARO).
Sep. 19, 2013, 2:35 PM
Sep. 16, 2013, 7:22 AM
- JPMorgan (JPM), Goldman Sachs (GS), and BofA (BAC) could be out tens of millions of dollars on commitments the banking trio made to help finance the $1.1B buyout of Rue21 (RUE), according to The New York Post.
- Potential buyers of the debt that was created to finance the Rue21 buyout are increasingly skittish with apparel retailers suffering from a weak Back to School season and cutting guidance heading into the holiday season.
- On a valuation basis, the $42 deal price for Rue21 looks quite lush.
Sep. 11, 2013, 6:02 PM
- Vertex (VRTX) +3.4% AH and Ametek (AME) +1.2%. AMD -0.5% AH and SAIC (SAI) -0.1% (those declines might get bigger before the dust settles). AMD and SAIC are joining the S&P MidCap 400, and Vertex and Ametek are leaving it. The changes will take place after the Sep. 20 close. (PR)
- Also: Capstead Mortgage (CMO) is replacing Rue 21 (RUE) in the S&P SmallCap 600 following the Sep. 19 close. CMO +2.9% AH.
Aug. 21, 2013, 8:30 AM
- For the second time this month American Eagle Outfitters (AEO) has rattled the retail sector with a disappointing read on retail demand.
- Weak guidance from the company on heightened promotional activity could raise some fears on the critical holiday season.
- Peer Aeropostale (ARO) is off 1.9% premarket. AEO -8.5%.
- On watch: TLYS, BKE, GPS, URBN, RUE, ANF
Aug. 8, 2013, 8:49 AM
Aug. 6, 2013, 8:17 AM
- A warning from American Eagle Outfitters (AEO) on its Q2 profit and sales growth due to broad consumer demand concerns could have a ripple effect across the sector.
- Shares of Abercrombie & Fitch (ANF) are already feeling the heat, -4.2% premarket.
- On watch: Gap (GPS), Urban Outfitters (URBN), Buckle (BKE), Aeropostale (ARO), Rue21 (RUE), Zumiez (ZUMZ).
Aug. 2, 2013, 9:50 AM| Aug. 2, 2013, 9:50 AM
Jun. 5, 2013, 4:26 PMrue21 (RUE): Q1 EPS of $0.44 misses by $0.03. Revenue of $224.4M (+9.1% Y/Y) misses by $5.43M. (PR) | Jun. 5, 2013, 4:26 PM
May 23, 2013, 12:45 PM
Currently, there's no company description for RUE.
Industry: Apparel Stores
Country: United States
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