Seeking Alpha

Ascena Retail Group Inc (ASNA)

  • Mon, Jul. 13, 12:45 PM
  • Mon, Jul. 13, 10:43 AM
    • Ascena Retail Group (NASDAQ:ASNA) is now down 14.4% on heavy volume after cutting FY15 profit guidance.
    • The dismal outlook arrived with some analysts already raising concerns on the costs of Ascena acquiring Ann.
    • Ann (NYSE:ANN) also trades weak, 3.36% lower on the day to a level slightly below its takeout price after starting the day with a $1.24 premium.
    | Comment!
  • Mon, Jul. 13, 9:19 AM
  • Fri, Jul. 10, 4:45 PM
    • Ascena Retail (NASDAQ:ASNA) now expects FY15 (ends in July) EPS of $0.57-$0.60, below prior guidance of $0.70-$0.75 and a $0.70 consensus. Adjusted EBITDA guidance is now at $365M-$375M.
    • The apparel retailer is also taking a $275M-$325M asset impairment charge at Lane Bryant, and a $50M pre-tax charge related to creating a reserve for Justice class-action litigation.
    • The guidance cut is blamed on a merchandise transition at Justice - CEO David Jaffe says the new guidance reflects "a more complete exit from the existing seasons merchandise mix" - and "lower than expected top-line performance at Justice and dressbarn."
    • In response to dressbarn's performance, Ascena is "making adjustments to [its] Fall value pyramid," and is upping its Fall season marketing spend.
    • Shares have fallen to $15.22 AH.
    | Comment!
  • Fri, Jun. 12, 7:45 AM
    • Ascena Retail Group (NASDAQ:ASNA) is upgraded by RBC Capital to an Outperform rating.
    • The rating action is tied to the earnings potential seen for Ascena from the acquisition of Ann.
    • RBC sets a price target of $20 on Ascena.
    • ASNA +1.9% premarket.
    | Comment!
  • Thu, Jun. 11, 8:48 AM
    • Clothing stores showed some signs of life in May as tipped in today's Retail Sales report.
    • The category was up 1.5% M/M and 3.6% Y/Y to outpace total retail sales.
    • The improvement is consistent is with the reads from the narrow range of apparel chains which still report monthly sales.
    • The sector has seen discounters show stronger traffic trends than mall-based chains, although both groups have eased off promotional activity a bit.
    • Previously: Retail sales stronger-than-expected in May
    | Comment!
  • Sat, Jun. 6, 12:58 PM
    • Many analysts covering the apparel/department store part of the retail sector have been pushing out the same story on global lifestyle brands and REIT conversions without giving investors much of a play except an all-in turnaround bet.
    • There's a suspicion with some industry insiders that F/X and comp sales headlines are hiding some undervalued picks.
    • A few screens below. Add your own in the comments.
    • Lowest forward price-to-earnings ratio: Genesco (NYSE:GCO), Dillard's (NYSE:DDS), Gap (NYSE:GPS), Stage Stores (NYSE:SSI), Stein Mart (NASDAQ:SMRT).
    • Lowest price-to-book ratio: Abercrombie & Fitch (NYSE:ANF), Stage Stores, Ascena Retail Group (NASDAQ:ASNA), Guess (NYSE:GES), J.C. Penney (NYSE:JCP).
    • Highest current ratio (assets/liabilities): Shoe Carnival (NASDAQ:SCVL), Francesca's (NASDAQ:FRAN), Guess, Citi Trends (NASDAQ:CTRN), DSW (NYSE:DSW).
  • Wed, Jun. 3, 12:56 PM
    • Shares of Ascena Retail Group (NASDAQ:ASNA) are up 7.1% on strong volume after the company reported Q1 earnings.
    • Ascena's full-year EPS guidance came in just ahead of consensus to help take the sting off an earnings miss.
    • During the conference call, execs said they expect to close the deal to purchase Ann in the second half of the year.
    • Significant accretion is seen resulting from the combination of retail operations.
    • Earnings call transcript
    • Previously: Ascena Retail Group misses by $0.02, misses on revenue
    | Comment!
  • Tue, Jun. 2, 4:07 PM
    • Ascena Retail Group (NASDAQ:ASNA): FQ3 EPS of $0.18 misses by $0.02.
    • Revenue of $1.15B (+0.9% Y/Y) misses by $10M.
    • Press Release
    | Comment!
  • Mon, Jun. 1, 5:35 PM
  • Fri, May 22, 7:59 AM
    • Ann (NYSE:ANN) reports comparable-store sales fell 1.5% in Q1.
    • The company says sales were weak in February before improving in March and April.
    • Comp growth by brand: Ann Taylor -2.6%, Ann Taylor Factory -14.5%, LOFT -0.7%, LOFT Outlet -0.2%.
    • Gross margin rate -110 bps to 52.3%.
    • SG&A expense rate -140 bps to 47.5%.
    • Total inventory per square foot +3% Y/Y.
    • Store count +2 Y/Y to 1,034.
    • Ann was acquired by Ascena Retail (NASDAQ:ASNA) last week.
    • Previously: ANN beats by $0.04, misses on revenue
    | Comment!
  • Tue, May 19, 11:41 AM
    • Ascena Retail Group (ASNA +5.8%) trades higher on high volume after several investment firms issue positive comments on the company's acquisition of Ann.
    • Piper Jaffray and SunTrust both think yesterday's dip in Ascena's share price gives investors a good entry point ahead of the Ann integration which should deliver quick synergies.
    • There was volatile trading yesterday on ASNA as it swung 15% swing from top to bottom.
    • Previously: Ascena Retail Group acquires Ann (May. 18 2015)
    • Previously: Ascena Retail Group higher after strategic Ann deal (May. 18 2015)
    | Comment!
  • Mon, May 18, 9:55 AM
    • Ascena Retail Group (ASNA +4.2%) trades higher after the company acquires Ann.
    • Some retail analysts think the deal price was struck at a favorable level due in part to Ann's last couple of weak quarters which were impacted by a slowdown at West Coast ports.
    • Fashion watchers also see some synergies between women's brands Lane Bryant, LOFT, Ann Taylor, Catherines, and Dressbarn all being held under the same umbrella.
    • Ascena says it thinks the deal will be "significantly" accretive in the first year after it closes.
    • Previously: Ascena Retail Group acquires Ann (May. 18 2015)
    | Comment!
  • Mon, May 18, 9:15 AM
  • Mon, May 18, 7:40 AM
    • Ascena Retail Group (NASDAQ:ASNA) acquires Ann (NYSE:ANN) for $47 per share in a cash and stock transaction.
    • The deal terms give Ann an enterprise value of ~$2B.
    • ANN +18.83% to $6.01.
    | Comment!
  • Wed, Apr. 15, 7:58 AM
    • Guggenheim Partners initiates coverage on American Eagle Outfitters (NYSE:AEO) and Ascena Retail (NASDAQ:ASNA) with Buy ratings.
    • Solid execution at both companies is cited.
    • The call from the investment firm on AEO and ASNA is a notch above the Neutral ratings it lined up on Deckers Outdoor (NYSE:DECK), Abercrombie & Fitch (NYSE:ANF), and Aeropostale (NYSE:ARO) on growth concerns.
    | Comment!
Visit Seeking Alpha's
ASNA vs. ETF Alternatives
Company Description
Ascena Retail Group Inc, through its subsidiaries, operates as a specialty retailer of apparel for women and tween girls and boys. The company offers apparel, accessories, footwear, and lifestyle products, such as bedroom furnishings and electronics.
Sector: Services
Industry: Apparel Stores
Country: United States