Jun. 12, 2014, 5:40 PM
- In a new 13D, Sycamore Partners discloses it has a 9.9% Express (EXPR) stake, and says it would like the board's help in performing "due diligence to determine a definitive valuation of [Express] in order to submit a binding, fully financed proposal to acquire all of the remaining common stock of [Express] not owned by Sycamore."
- Sycamore has already taken a large stake in fellow retailer Aeropostale (ARO), and struck a deal last year to acquire The Jones Group.
- ARO +4.8% AH.
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.
Jan. 15, 2014, 8:03 AM| 1 Comment
Nov. 27, 2013, 7:19 AM
- While the focus in the teen retailing space is on a potential LBO for Aeropostale (ARO), FBR says Abercrombie & Fitch (ANF) may be the better bet.
- "We performed an LBO analysis on the teen players (AEO, ANF, ARO), which have seen their valuations decline over the past few months. ANF ranks the highest in terms of potential (34% IRR), followed by ARO (29% IRR), and AEO (25% IRR)."
- "In our view, ANF currently has the best combination of valuation, FCF, potential for operating improvement, and ability to take on leverage of the three teen retailers, although we acknowledge that a successful LBO may require a change in management. While there is much interest in ARO, its current valuation, required leverage, large capital requirement for significant improvements in profitability, and now management backlash could make it a feat much more difficult than with ANF. We believe an LBO of AEO is prohibitive given its current valuation and less opportunity to improve since it has been the best run of the three companies."
- FBR maintains an Outperform rating and $43 price target on ANF, a Market Perform and $15 price target on American Eagle Outfitters AEO, and a Market Perform rating and $10 price target on ARO.
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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