Canaccord Morning Coffee on Retailers: ANN, ARO, FL, GPS and HIBB
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Price: $32.29 +2.31%
Rating Summary:
8 Buy, 10 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Rating Summary:
8 Buy, 10 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Trade ANN Now!
Canaccord Morning Coffee on Retailers: The Good, The Bad and The Ugly
Ann (NYSE: ANN): Shopping spree - Ann, the parent of Ann Taylor and LOFT stores, reported higher-than-expected quarterly profit for the eighth time in a row as its affordable and bright-colored clothes found favor with shoppers, sending its shares soaring (up almost $5 last Friday, shares up 1.1% this morning). The women's apparel retailer has been trying to reduce promotions at its Ann Taylor stores and offer products at lower starting prices to spur full-price sales.
Aeropostale (NYSE: ARO): Fashion Flop - Aeropostale’s fiscal second-quarter earnings sank 98% as the youth-focused apparel retailer’s expenses increased and as a one-time gain boosted the company’s year-ago results. The company said the retail business was very competitive and discounts were steep during the quarter. It forecast a smaller-than-expected quarterly profit, pointing to a "soft start to the important back-to-school selling season."
Foot Locker (NYSE: FL): It shoots...it scores! Sports footwear retailer Foot Locker’s second-quarter net income jumped 59%, boosted by higher sales, cost controls and a small tax-related gain results. The company’s results beat Wall Street estimates for eight quarters in a row as more customers flocked to the company's stores. The retailer has better managed its inventory levels over the past few quarters and has benefited from new and eye-catching designs of athletic gear.
Gap (NYSE: GPS): The new kid on the denim block - Gap posted better-than-expected Q2 earnings and raised its full-year forecast helped by bright colored-jeans and tight inventories. The company reported EPS of $0.49, $0.02 above Canaccord Genuity Retail Analyst Laura Champine’s estimate and $0.01 ahead of consensus and the high end of prior guidance. The clothing retailer benefited from a 295bps yr./yr. gross margin improvement, better than Champine’s estimate of a 100bps increase. Gap is progressing through what management has labeled an investment year, which resulted in a 95bps increase in the operating expense rate driven primarily by elevated marketing spending.
Hibbett Sports (Nasdaq: HIBB): Swing and a miss - Shares of Hibbett Sports traded lower despite posting a Q2 earnings beat as revenue and same-store sales fell short of consensus estimates. HIBB’s Q2 EPS of $0.30 beat Canaccord Genuity Consumer Products Analyst Camilo Lyon’s $0.26 estimate and the Street at $0.27. The beat came from a stronger gross margin, however, same-store sales increase of 4.8% missed Lyon’s 6% estimate and consensus of 6.2%
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Ann (NYSE: ANN): Shopping spree - Ann, the parent of Ann Taylor and LOFT stores, reported higher-than-expected quarterly profit for the eighth time in a row as its affordable and bright-colored clothes found favor with shoppers, sending its shares soaring (up almost $5 last Friday, shares up 1.1% this morning). The women's apparel retailer has been trying to reduce promotions at its Ann Taylor stores and offer products at lower starting prices to spur full-price sales.
Aeropostale (NYSE: ARO): Fashion Flop - Aeropostale’s fiscal second-quarter earnings sank 98% as the youth-focused apparel retailer’s expenses increased and as a one-time gain boosted the company’s year-ago results. The company said the retail business was very competitive and discounts were steep during the quarter. It forecast a smaller-than-expected quarterly profit, pointing to a "soft start to the important back-to-school selling season."
Foot Locker (NYSE: FL): It shoots...it scores! Sports footwear retailer Foot Locker’s second-quarter net income jumped 59%, boosted by higher sales, cost controls and a small tax-related gain results. The company’s results beat Wall Street estimates for eight quarters in a row as more customers flocked to the company's stores. The retailer has better managed its inventory levels over the past few quarters and has benefited from new and eye-catching designs of athletic gear.
Gap (NYSE: GPS): The new kid on the denim block - Gap posted better-than-expected Q2 earnings and raised its full-year forecast helped by bright colored-jeans and tight inventories. The company reported EPS of $0.49, $0.02 above Canaccord Genuity Retail Analyst Laura Champine’s estimate and $0.01 ahead of consensus and the high end of prior guidance. The clothing retailer benefited from a 295bps yr./yr. gross margin improvement, better than Champine’s estimate of a 100bps increase. Gap is progressing through what management has labeled an investment year, which resulted in a 95bps increase in the operating expense rate driven primarily by elevated marketing spending.
Hibbett Sports (Nasdaq: HIBB): Swing and a miss - Shares of Hibbett Sports traded lower despite posting a Q2 earnings beat as revenue and same-store sales fell short of consensus estimates. HIBB’s Q2 EPS of $0.30 beat Canaccord Genuity Consumer Products Analyst Camilo Lyon’s $0.26 estimate and the Street at $0.27. The beat came from a stronger gross margin, however, same-store sales increase of 4.8% missed Lyon’s 6% estimate and consensus of 6.2%
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