16.50 -0.28 (-1.67%)
After hours: 5:30PM EST
|Bid||16.41 x 4000|
|Ask||16.89 x 800|
|Day's Range||16.48 - 17.03|
|52 Week Range||15.11 - 31.39|
|Beta (3Y Monthly)||0.70|
|PE Ratio (TTM)||6.84|
|Earnings Date||Nov 21, 2019|
|Forward Dividend & Yield||0.97 (5.61%)|
|1y Target Est||16.80|
The latest retail earnings results from the likes of Home Depot. A look at what investors should expect from high-flying Target. And why Tempur Sealy (TPX) is a Zacks Rank 1 (Strong Buy) stock right now...
Today, children’s fashion brand, Janie and Jack, debuts their newest collection with celebrated fashion designer and entrepreneur, Rachel Zoe. A two-collection partnership, which launches with the Rachel Zoe x Janie and Jack Party Collection and follows with chic Resort Collection, features clothing and accessories inspired by Zoe’s iconic signature style, including gold and sparkle embellishments, texture and statement silhouettes.
Gap Inc. is scheduled to report third-quarter earnings after the closing bell on Thursday, and there could be one bit of news to come from the announcement: the company could cancel the Old Navy spin off, Wells Fargo says. Gap already announced third-quarter same-store sales declines at Old Navy, Banana Republic, and the namesake chain of stores, and cut its full-year guidance. Moreover, Art Peck, the company's chief executive, is leaving the company. "Keep in mind, when discussing the dynamics that would potentially take [the spinoff off] the table this year, management has stated that a material miss to Old Navy's plan this fiscal year would force them to at least rethink the strategy," Wells Fargo says. Not only will the low-price retailer miss, but the cost to separate the company would be about $700 million to $800 million, or about $2 per share, analysts note. "We believe that the most meaningful piece of incremental news likely to come our of their Q3 call is potentially calling off the spin - which we believe could be a positive catalyst for shares given the $700 million to $800 million of cash (the one-time spin expenses) that would re-enter the Gap enterprise value," Wells Fargo wrote. Wells Fargo rates Gap shares market perform. Gap stock is down more than 31% for 2019 to date while the S&P 500 index is up 24.5% for the period.
Neither corporate profits nor economic data have yet to corroborate the ongoing rally and rotation in U.S. stocks, so the market may be getting ahead of itself and be due for a pullback, analysts and investors told MarketWatch.
Retailers' performance over the last 2.5 months is a sign of positive market sentiment reentering the space. This sentiment will be tested next week when a wave of retail results hits the market.
Gap Inc. has opened a number of pop ups for the Hill City men's athletic gear brand and the Janie and Jack children's brand for the holiday season. Hill City will be available in seven Athleta stores on the West Coast, including on Fillmore St. in San Francisco and Old Mill District in Bend, Ore. And Janie and Jack will be available in two Banana Republic stores in New York and San Francisco. Gap shares are up 3.8% in Friday trading, but down 31% for the year to date. The S&P 500 index is up 24.2% for the period.
Gap Inc. today announced its board of directors authorized a fourth quarter fiscal year 2019 dividend of $0.2425 per share, payable on or after January 29, 2020 to shareholders of record at the close of business on January 8, 2020.
The Fisher family which launched the company 50 years ago, has had their net worth reduced by $1 billion over the past year as the company's stock continues to tumble in the face of weakening sales.
Gap (GPS) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
`[Fundamentals] are deteriorating as competition in all categories remains stiff and pricing power is fleeting in all of [Gap's] core markets,' the analyst's note says.
Stock in both retailers has been on a tear this year. Cowen says they can continue to benefit as Americans grow more concerned about the economy and look to discount stores for their holiday shopping.
Softness in Gap's (GPS) namesake brand is likely to reflect in Q3 performance. Also, the company is grappling with dismal comps and strained margins.
It's already here. The sights. The sounds. The red cups. The holiday spending frenzy is once upon us -- whether we are ready for it or not. For many retail stocks, this is the most critical period all year. The don't call it Black Friday for nothing. However, the consumer spending environment continues to get even more cutthroat and hard to navigate.Thanks to online and omni-channel shopping, mobile commerce, one- and two-day shipping and a host of other reasons, many retail stocks are already suffering. The sector is quickly becoming a bifurcated industry -- with haves and have-nots fighting for survival. And the holiday season has only exacerbated this fight. Extra discounting, sales and "door-busters" make a tough environment even tougher.That means there are several retail stocks that aren't going to fair too well over the next few months. And in a few cases, they may not be around much longer.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor investors, knowing which companies to avoid can be just as important as knowing which stocks to buy. * 7 Large-Cap Stocks to Give a Wide Berth And with that, here are five retail stocks that should get a big lump of coal this holiday season. J. C. Penney (JCP)Source: Supannee_Hickman / Shutterstock.com After Sear's bit the dust, it's easy to dunk on J. C. Penney (NYSE:JCP) as being the next major retail stock to meet its maker. Like Sear's, JCP is an old-fashioned department store in a world that no longer supports that style of retail concept. Big discounters like Walmart (NYSE:WMT) and e-commerce giants like Amazon (NASDAQ:AMZN) simply do it better. And in that, J. C. Penney has been suffering for years.The problem is, the suffering may finally be hitting a critical level.Debt at JCP remains an issue. As of last quarter, the retailer had roughly $3.6 billion in long-term debt on its balance sheet and about $1 billion in operating lease obligations. The problem is that JCP only has about $175 million in the bank and short-term investments. That's not exactly a great ratio of debt to cash. Nor is that great when sales continue to slide as e-commerce eats its lunch.Even worse is that sort of debt makes it harder for JCP to expand and update in a meaningful way. Sure, the firm has a new store concept, but it simply lacks the funds to roll it out to a variety of locations. Target (NYSE:TGT) spent more than $7 billion remodeling its stores to make them "hipper" and omni-channel friendly. JCP simply doesn't have that kind of cash or time.With JCP already talking to creditors about restructuring its debts, sales continuing to sleep and other rivals getting strong, it's only a matter of time until the firm has to pack up. For investors, JCP is easily a retail stock to avoid this holiday season. Wayfair (W)Source: Jonathan Weiss / Shutterstock.com It's not that Wayfair (NYSE:W) is a bad choice among retail stocks, it's just that a few issues may be hitting its torrid pace of growth. In this case, we're talking about costs across a variety of fronts.While its revenues have continued to climb, W stock has started to see its margins erode and various costs start to increase. As with JCP above, playing in the e-commerce world is an expensive game. Unfortunately for Wayfair, it's now being forced to shell out more to keep those revenues climbing.Last quarter, Wayfair was forced to spend 58.7% more on technology, infrastructure and other expenses related to gathering sales and getting them to consumers fast. Advertising spending jumped more than 12%. Meanwhile, the actual costs of its goods managed to jump as the trade war continues to slog on. All in all, the issues with costs have made U.S. margins a fat negative 3% for W.That doesn't instill much confidence heading into a slowing consumer environment. Add in the fact that other rivals continue to spend more in order to boost shipping, fulfillment and ordering ease, and you start to see a worrisome picture for Wayfair. No wonder why shares cratered the day it announced its results and poor outlook. * 7 Beverage Stocks to Stock Up On W stock isn't a bad retailer overall. It's just that the firm is dealing with some things outside its control. And because of that, it could be rocky for the firm going forward. Shares may still have more room to drop. Gap (GPS)Source: Alex Millauer / Shutterstock.com The middle isn't exactly a great place to be these days. Consumers either want high-end products or deep bargains. For retail stocks offering clothing like the Gap (NYSE:GPS), this is a tough pill to swallow.Sales continue to decline at Banana Republic and Gap as these brands struggle to find an audience.The bright spot for GPS stock has continued to be its bargain-brand Old Navy. These days, Old Navy accounts for roughly 50% of Gap's total sales -- with the other brands bringing in the rest -- around $7.9 billion from Old Navy against $8.7 billion for the other brands. But the pace of revenue growth at Old Navy has been brisk.To that end, GPS has decided to spin out Old Navy as a separate company. And that might seem like a good idea at first. The problem is, Gap really needs those assets to keep the ship moving. GPS is profitable at its other brands, but their slow decline is a spot for concern. Secondly, the hallmark of Gap's online operations has been the one-bag integration of all its brands. Picking up incremental sales and cross-selling has worked in its favor.What's worst is that even execs at Gap aren't sure of the spinoff plans. CEO Art Peck abruptly resigned from the company.With reduced guidance, slowing traffic and no real plans to get out of its funk, GPS is one retails stock that will continue to face some big issues. Those issues will take center stage during this holiday season. Chico's (CHS)Source: Kristi Blokhin / Shutterstock.com "OK Boomer" maybe be a rallying cry among America's youth, but it's also being directed towards a bunch of retail stocks. Take Chico's (NYSE:CHS) for example.Chico's runs a variety of stores -- including its namesake, Soma and White House Black Market. Generally, these brands fall under the higher-end and casual work clothing umbrellas. The problem for CHS is that this sort of style really isn't in focus anymore with millennial and Generation Z shoppers. With joggers now an office staple and bralettes replacing traditional intimate apparel, Chico's is facing a real problem. It doesn't have a core audience anymore. The Boomers are gone and the younger generations aren't buying.Last quarter alone, sales declined by 6.1%. This follows the trend of continued lower quarterly sales figures.Like many of the retailers on this list, CHS is realizing these lower sales at a time when debts and costs have risen. Thanks to its high-end nature, most of its store frontage is in upper-scale malls. Thanks to this, rent expenses are higher and produces more drag on its bottom line. No wonder why Chico's has started closing stores -- 53 have closed over the last three months. * These 7 Stocks to Buy Were Big Winners This Earnings Season In the end, Chico's is a brand without any buyers. With no real plans to turn the ship around, CHS stock could be a real drag this holiday season. Pennsylvania Real Estate Investment Trust (PEI)Source: jayk67 / Shutterstock.com If many retail stocks are suffering, then the owners of malls and shopping plazas must be really feeling the heat. Pennsylvania Real Estate Investment Trust (NYSE:PEI), also known as PREIT, is a prime example of the carnage being felt by the mall owners.PEI started out as a sprawling regional mall operator and as the recession hit, it took great steps to improve its portfolio of properties. That worked in raising its average sales per square foot and boosting quality of tenants. This worked great and the stock rebounded.And then the bottom dropped out for PREIT.This year, we've seen a variety of retailers such as Payless, Gymboree, Things Remembered and now Forever 21 file for bankruptcy. All of which are fodder for PREIT's style of malls. These closes are starting to once again hurt PEI's bottom line.For the third quarter, PREIT saw its same-store net operating income decline by 5.8% year over year. That decline doesn't exclude lease terminations. And with that, decline, funds from operations -- or the cash that the REIT has to deliver to investors as dividends -- dropped by 34% year-over-year. This follows a 44% year-over-year decline in FFO for the second quarter.PEI stock and its juicy 14% dividend is in trouble. This proves that the carnage in retail stocks is wide reaching.At the time of writing, Aaron Levitt had a long position in AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Large-Cap Stocks to Give a Wide Berth * 7 Potential New Stocks That Should Not Go Public * 5 Chinese Stocks to Buy Surging Higher The post 5 Retail Stocks Getting Nothing but Coal This Holiday Season appeared first on InvestorPlace.
While Rachel Zoe has been able to successfully leverage her name into a handful of businesses, she isn’t so optimistic about the fashion industry at large.
News of the chief executive’s departure was coupled with the reporting of a decline in third-quarter sales and a downwardly revised financial outlook, which together could cloak the planned spinoff of the Old Navy chain in new uncertainty.
U.S. stocks inched up to close at fresh record highs Friday even through President Trump said the administration had yet to agree to roll back import duties on China as part of a “phase-one” trade deal.
Stocks ended slightly higher, shrugging off earlier losses after President Donald Trump wavered over whether tariffs would be rolled back as part of a partial deal with China.
MKM Partners Roxanne Meyer maintains a Neutral rating on Gap's stock with a fair value estimate of $18. UBS analyst Jay Sole maintains at Neutral, $18 price target. Peck's departure announcement was "surprising" as it coincides with the pending spin-off of the Old Navy brand, Meyer said.