Mar. 12, 2014, 1:24 PM
- Apparel stocks are getting roughed up a bit after Express is the latest retailer to come in with a profit warning for Q1.
- The winter storms and holiday promotions that plagued December and January sales totals set the tone for the sector early in the quarter, but concerns are deepening that the promotional atmosphere will be tough to shake off as traffic trends stay weak into March.
- Notable decliners: Lululemon (LULU) -3.7%, Aeropostale (ARO) -2.3%, American Eagle Outfitters (AEO) -2.9%, Gap (GPS) -1.9%.
Mar. 11, 2014, 9:07 AM
- Weak reports from Urban Outfitters (URBN) and American Eagle Outfitters (AEO) could cast a pall over the entire teen apparel sector.
- Both retailers say they are very cautious on Q1 results after seeing weather clip traffic and the holiday promotional activity linger on.
- On watch: ARO, PSUN, PLCE, ANF, CHS, BKE, ZUMZ, EXPR.
Mar. 10, 2014, 9:41 AM
Mar. 6, 2014, 9:42 AM
- Teen-focused retail stocks are having a tough time getting out of the starting gate after a wave of sales and profit reads came in sluggish.
- There are more concerns on the large retail footprint of the group with margin gains being driven higher on the e-commerce side of the business.
- Decliners: Aeropostale (ARO) -1.5%, Pacific Sunwear (PSUN) -1.7%, Children's Place (PLCE) -10.2%, American Eagle Outfitters (AEO) -1.7%, Abercrombie & Fitch (ANF) -0.9%.
Mar. 5, 2014, 9:06 AM
- A recent poll by the Wall Street Journal and NBC indicates 63% of American support raising the minimum wage.
- Though the Republicans are expected to challenge anything brought to the floor of the House, there's a growing consensus in DC that some minimum wage legislation will eventually pass.
- Democrats argue that the current minimum wage level of $7.25 per hour is low by historical standards when adjusted for inflation.
- Related stocks: CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, THI, BDL, NATH, CEC, LUB, BKW, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, AEO, ANF, ARO, BBBY, BJ, CHS, COST, DG, DLTR, GPS, HD, JCP, JWN, KR, KSS, LOW, LB, NDN, ODP, PIR, PLCE, RSH, SPLS, SWY, TGT, TJX, URBN, WMT
Feb. 26, 2014, 2:44 PM
- Three Senate Democrats have broken away from Majority Leader Harry Reid's $10.10/hour line in the sand on minimum wage legislation.
- Mary Landrieu of Louisiana, Mark Pryor of Arkansas, and Mark Warner of Virginia have all tipped off that they think there could be some room to negotiate over the amount of an increase over the current federal minimum wage of $7.25/hour. The GOP likes the status quo, but is viewed as likely to give some ground in an election year.
- Federal minimum wage legislation could create higher costs in the retail and restaurants sectors as companies adjust to the new higher floor.
- Last week, Gap made a preemptive move to raise its own hourly wage in a development that stirred the pot a little bit.
- Related stocks: CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, THI, BDL, NATH, CEC, LUB, BKW, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, AEO, ANF, ARO, BBBY, BJ, CHS, COST, DG, DLTR, GPS, HD, JCP, JWN, KR, KSS, LOW, LB, NDN, ODP, PIR, PLCE, RSH, SPLS, SWY, TGT, TJX, URBN, WMT.
Feb. 26, 2014, 8:15 AM
- Teen apparel retailers are on the mend this week as Aeropostale (ARO) considers a private equity investment and Abercrombie & Fitch (ANF) beats Q4 estimates through furious cost-cutting.
- Other struggling retailers that cater to the mall rats could follow a similar strategy after coming after a disastrous holiday season for store traffic and pricing.
- On watch: Zumiez (ZUMZ), Express (EXPR), Buckle (BKE), American Eagle Outfitters (AEO).
Feb. 25, 2014, 6:52 PM
- Bloomberg reports Aeropostale (ARO) is working with Barclays to explore investment options such as a convertible note sale or a PIPE transaction, and is also "weighing a straight-up sale."
- Reuters reported two weeks ago the struggling apparel retailer is open to a PIPE deal. Activist investor Crescendo Partners has been pressing Aeropostale to look for a buyer.
- ARO +3.6% AH.
Feb. 14, 2014, 8:51 AM| Comment!
Feb. 10, 2014, 2:44 PM
- Aerpostale (ARO -2.2%) might look to P-E firms for help with a capital raise, according to Reuters.
- There is speculation that the retailer might forgo public markets to raise the funds in a private investment transaction.
- What to watch: Activist investors Sycamore Partners and Crescendo Partners are likely to have ideas of their own on ARO's future path.
Jan. 28, 2014, 10:46 AM
- Aeropostale (ARO +1.7%) CEO Thomas Johnson could be feeling a tad paranoid after American Eagle Outfitters and Abercrombie & Fitch both make major management changes within the last week.
- What to watch: Q4 results from the retailer are forecast to come in weak which will shine a spotlight on the company's strategic plan. Analysts see either a major initiative to reduce stores, a CEO transition, or an exploration of go-private options as possibilities.
Jan. 23, 2014, 2:10 PM
- Shares of a number of retailers selling apparel to teenagers trade weaker than market indexes after peer American Eagle Outfitters replaces its CEO unexpectedly.
- The gloom in the sector has only intensified over the last week with more warning signs that mall traffic could stay depressed.
- Decliners: Aeropostale (ARO) -4.6%, Pacific Sunwear (PSUN) -1.4%, Buckle (BKE) -1.6%, Zumiez (ZUMZ) -2.2%, Express (EXPR) -1.6%, Abercrombie & Fitch (ANF) -1.4%.
Jan. 22, 2014, 1:38 PM
- Overall retail space could be reduced by between one-third to one-half over the next ten years, forecasts industry watcher Michael Burden.
- The harsh assessment could indicate the round of store closings from Sears Holdings (SHLD), J.C. Penney (JCP), and Macy's (M) is only the tip of the iceberg. Watch for American Eagle Outfitters (AEO), Aeropostale (ARO), Dillard's (DDS), Nordstrom (JWN), and Kohl's (KSS) to enact some logical downsizing, while even Wal-Mart (WMT) and Best Buy (BBY) could surprise with some paring.
- Analysts think stores at malls will be shuttered faster than open air outlets.
- What to watch: Vibrant brands such as Michael Kors (KORS), Lululemon (LULU), and Vince (VNCE) could shift into a standalone mode as consumer demand stays strong for their on-trend products, but mall metrics trend weaker.
Jan. 15, 2014, 12:31 PM
- Stifel Nicolaus has a more moderate expectation of the share price Aeropostale (ARO +2.7%) might see in a take-private deal than SunTrust did earlier today with its $15-$17 estimate.
- The investment firm applies the equivalent transaction value Talbots that received in its sale to come up with $9.35 per ARO share. The deal has a 50% chance of occurring, says Stifel.
- Brean Capital also takes a dimmer view of P-E interest, saying the exit strategy for the pressured retailer is hard to figure. Private or public, the intense pricing in the teen space amid a group smitten with buying clothes online makes the turnaround case tough.
Jan. 15, 2014, 9:11 AM
Jan. 15, 2014, 8:15 AM
- Aeropostale (ARO) could command as much as $15 to $17 per share in a buyout, according to an optimistic read from Suntrust.
- The report that the retailer has struck up conversations with P-E firms is expected to draw a spotlight on the group of specialty retailers which have suffered through an extended period of soft store traffic (Related: E-commerce and teens: A dangerous mix for specialty retail).
- ARO +8.0% premarket to $8.35.
- On watch: URBN, ANF, AEO, CHS, PSUN.
ARO vs. ETF Alternatives
Aeropostale Inc is amall-based,specialty retailer of casual apparel and accessories targeting 14 to 17 year-old young women and men through its Aropostale stores and website and 4 to 12 year-olds through its P.S. from Aropostale stores and website.
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