This is turning out to be a cruel summer for teen retailers, with Abercombie & Fitch (NYSE:ANF) the latest to report very disappointing results and weak guidance. With the A-list retailers all struggling (ANF, American Eagle (NYSE:AEO), and Aeropostale (NYSE:ARO)),
it's pretty clear that traffic and promotions are having a seriously
adverse impact on many retailers. While the results from companies like Urban Outfitters (Nasdaq:URBN) and Buckle (NYSE:BKE)
say that it's not a wholesale wipe-out in the sector, it's pretty clear
that Abercrombie & Fitch continues to face some serious challenges
in turning around its comps.
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http://www.investopedia.com/stock-analysis/082213/abercrombie-fitch-latest-get-trampled-anf-aeo-urbn-bke-aro.aspx
Showing posts with label Buckle. Show all posts
Showing posts with label Buckle. Show all posts
Thursday, August 22, 2013
Saturday, December 1, 2012
Investopedia: Can Aeropostale Be More Than A Price Point?
As
a value-oriented apparel retailer catering to the teen market,
Aeropostale
(NYSE:ARO)
did pretty well during the 2009-2010 period when many other youth
retailers like American
Eagle Outfitters
(NYSE:AEO)
and Abercrombie
& Fitch
(NYSE:ANF)
saw serious sales pressures. Since then, though, it hasn't been
exactly clear that Aeropostale has a workable strategy outside of
pricing - and shrinking price differentials have whittled away the
company's momentum, cash flow and market
cap. The real question for investors, then, would seem to be
whether this company can develop a strong enough merchandising
identity that price is no longer its primary weapon.
To read more, please click the link:
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Friday, November 16, 2012
Investopedia: Has Abercrombie & Fitch Turned The Corner?
Clothing
retailers are not typically included in lists of cyclical
industries, but I would challenge investors to look at the
long-term performance of companies like American
Eagle
(NYSE:AEO),
Buckle
(NYSE:BKE)
or Aeropostale
(NYSE:ARO)
and not conclude that sizable up-and-down swings are just part of the
fabric of this business.
With that in mind, it was tempting to argue during Abercrombie & Fitch's (NYSE:ANF) recent struggles that "this too shall pass," and that the company will eventually turn around its operating performance. While Abercrombie's third quarter performance was certainly surprising, and stimulated a major move in the stock, investors may want to be cautious in assuming that the worst is now past.
With that in mind, it was tempting to argue during Abercrombie & Fitch's (NYSE:ANF) recent struggles that "this too shall pass," and that the company will eventually turn around its operating performance. While Abercrombie's third quarter performance was certainly surprising, and stimulated a major move in the stock, investors may want to be cautious in assuming that the worst is now past.
Friday, March 2, 2012
Investopedia: American Eagle Outfitters Needs To Tend To Its Nest
Teen retailing is a fickle business where nothing lasts forever. American Eagle Outfitters (NYSE:AEO) knows this as well as any company, as the history of this name has included multiple periods of strong comps growth followed by multi-year funks and eventual recovery. As the company seems to be transitioning from funk to recovery, some key questions for investors relate to whether management can maintain the sales momentum, and whether it can couple that with solid margin improvements.
Coming Out Of The Funk, But At What Cost?
American Eagle certainly had a rough go of it lately, as the company misfired on its product assortments and lost momentum to other teen retail rivals like Aeropostale (NYSE:ARO), rue21 (Nasdaq:RUE), Buckle (NYSE:BKE) and most recently Hennes & Mauritz. Management didn't just surrender the field, though, and results have been improving steady - from negative 10% comps in 2008 to negative 4% in 2009, negative 1% in 2010 and recent positive comps.
Continue reading here:
http://stocks.investopedia.
Wednesday, November 30, 2011
Investopedia: American Eagle Needs More Preening
Investors hoping for a rapid turnaround in American Eagle Outfitters (NYSE:AEO) should be a little concerned. Although the company is reporting better results, it seems that much of that is a byproduct of easier comps, as opposed to truly improving performance. Moreover, while American Eagle has been one of the very few to consistently post attractive returns on capital and earn real economic profits in the brutally-competitive no-moat retailing world, competition makes this very nearly a zero-sum game. There is still value in these shares, but investors need to understand that the company has to sell Wall Street on its turnaround plan before the shares are likely to match that value.
An Ok Third Quarter
American Eagle had preannounced top-line results, so there were few surprises there. Revenue rose almost 11% on a 5% comp-store increase. Keep in mind, though, that the comp-store growth was just 1% in the prior quarter, so a rebound was to be expected. Direct sales continue to be a growth opportunity (up 21% this quarter), while traditional store sales growth is more modest.
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http://stocks.investopedia.
An Ok Third Quarter
American Eagle had preannounced top-line results, so there were few surprises there. Revenue rose almost 11% on a 5% comp-store increase. Keep in mind, though, that the comp-store growth was just 1% in the prior quarter, so a rebound was to be expected. Direct sales continue to be a growth opportunity (up 21% this quarter), while traditional store sales growth is more modest.
Click the link to continue:
http://stocks.investopedia.
Tuesday, May 31, 2011
Investopedia: American Eagle's Down But Not Out
Nothing lasts forever in retailing; anyone younger than 35 probably has no idea what a "blue light special" is and once-popular retailers like Montgomery Ward and Service Merchandise are long gone. Even on a less dramatic level, there is a definite cyclicality to the retail business - few companies can manage their merchandising without missteps for years at a time, and that has been especially true in teen retailing.
To read the complete piece, please click the link:
http://stocks.investopedia.
That said, it seems like too many analysts and investors are counting American Eagle Outfitters (NYSE:AEO) out of the fight prematurely. True, the company's same-store sales are not good right now, but this retailer is far from a goner and new leadership could be the catalyst to a more significant turnaround. (For background reading, check out The 4 R's Of Retail Investing.)
American Eagle's Disappointing Start to the Fiscal Year
There wasn't much good news for American Eagle to crow about this quarter. Revenue dropped 6% (and missed estimates by more than 4%) as comps fell a surprising 8%. Sales were especially weak in women's merchandise as comps here were down 10% (versus a 5% drop in men's). Online sales were not much help either, as sales rose just 3%.
To read the complete piece, please click the link:
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Friday, October 1, 2010
The Vikings Are Coming
Give the Swedes credit - they know what people like when it comes to cheap chic. IKEA has stormed the world with popular (if quirky) flat-pack furniture, and now retailing giant Hennes & Mauritz (Nasdaq:HNNMY) is doing the same in the clothing world. Although H&M is still relatively unknown in the U.S., H&M operates around 2,000 stores around the world and is a major clothing retailer in much of Western Europe.
The Quarter that Was
H&M continues to post excellent growth as people gravitate toward the company's mix of attractive styling and prices. Total sales were up 14% in the third quarter, with comparable sales up about 11%. The company has opened about 105 new stores so far this year, even though it has mentioned that a slower pace of mall openings has curtailed their near-term store expansion goals somewhat.
Click on the link for the full article:
http://stocks.investopedia.com/stock-analysis/2010/The-Vikings-Are-Coming---With-Fashion-HNNMY-ARO-CHS-BKE-GPS1001.aspx
The Quarter that Was
H&M continues to post excellent growth as people gravitate toward the company's mix of attractive styling and prices. Total sales were up 14% in the third quarter, with comparable sales up about 11%. The company has opened about 105 new stores so far this year, even though it has mentioned that a slower pace of mall openings has curtailed their near-term store expansion goals somewhat.
Click on the link for the full article:
http://stocks.investopedia.com/stock-analysis/2010/The-Vikings-Are-Coming---With-Fashion-HNNMY-ARO-CHS-BKE-GPS1001.aspx
Friday, August 27, 2010
Angst Among Teen Retailers
Maybe America's malls are not quite as empty yet as the one in the Romero classic Dawn Of The Dead, but investors can definitely hear some moaning from retailers. Wednesday's earnings from American Eagle Outfitters (NYSE:AEO) will not stand out as being all that exceptional, as most youth-oriented retailers saw a poor second quarter and have little optimism about the back-to-school season.
The Quarter That Was
American Eagle reported that total sales rose 1%, while comparable store sales fell 1%. Unfortunately, there was not much to mitigate this performance. The company spent the quarter shutting down the disappointing MARTIN + OSA stores (so much for its attempt to move out of the core teen market), and overall online sales were down 9%. Making matters worse, that poor sales performance would have been even worse without some aggressive markdowns, and those markdowns pushed gross profit down 6%.
To read the entire article, please click on the link:
http://stocks.investopedia.
The Quarter That Was
American Eagle reported that total sales rose 1%, while comparable store sales fell 1%. Unfortunately, there was not much to mitigate this performance. The company spent the quarter shutting down the disappointing MARTIN + OSA stores (so much for its attempt to move out of the core teen market), and overall online sales were down 9%. Making matters worse, that poor sales performance would have been even worse without some aggressive markdowns, and those markdowns pushed gross profit down 6%.
To read the entire article, please click on the link:
http://stocks.investopedia.
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