Price Crosses Moving Average
|Bid||0.00 x 800|
|Ask||14.99 x 1000|
|Day's Range||13.35 - 15.08|
|52 Week Range||8.00 - 28.02|
|Beta (5Y Monthly)||1.21|
|PE Ratio (TTM)||N/A|
|Earnings Date||May 19, 2020 - May 24, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Feb 19, 2020|
|1y Target Est||20.17|
Payden and Rygel Chief Economist Jeffrey Cleveland joins Yahoo Finance's Zack Guzman to discuss the economic outlook for the U.S. as coronavirus cases grow domestically.
Capri Holdings (CPRI) decides to cut down on expenses to stay financially strong during the COVID-19 crisis. Also, it intends to restructure the organization by minimizing workforce.
Buckle (BKE) plans to furlough employees from Apr 5 and extend store closures for an indefinite time span as part of the coronavirus battle.
L Brands (LB) announces additional measures in the wake of increasing uncertainty surrounding the coronavirus pandemic. It decides to suspend dividend starting the second quarter.
The coronavirus employment crisis deepened on Monday when tens of thousands of US retail workers at companies including Macy’s, Gap and Kohl’s were told that they would be temporarily laid off. In a dark day for the US labour market, a series of the country’s largest chains that employ more than 420,000 people between them warned they had to put workers on a leave of absence without pay as extended restrictions to contain coronavirus would keep stores closed longer than previously thought. The department store group Macy’s also said it was furloughing most of its 125,000-strong workforce.
L Brands is chopping expenses and capital spending. Its stores for Bath & Body Works, Victoria's Secret and Pink are closed indefinitely.
L Brands is extending its store closures and plans to furlough workers amid the ongoing coronavirus pandemic. The apparel retailer will keep all Bath & Body Works, Victoria's Secret and Pink stores closed indefinitely, having previously said the coronavirus-related closures would last until March 29. The exact number of people who will be furloughed wasn't disclosed, but includes all store associates below managers, field asset protection investigators, staff of five closed distribution centers, processing center associates below the supervisor level, call associates who can't work from home and security and dining staff at the home office buildings.
L Brands Inc. said Friday it was halting its dividend, cutting expenses and its capital expenditures plan, furloughing employees and cutting executive pay to shore up its balance sheet amid the coronavirus pandemic. Dividend payments are suspended starting with the payment in the second quarter of fiscal 2020, said L Brands, the parent company of Bath & Body Works. "The company remains committed to paying dividends over the long-term and will re-evaluate when appropriate," L Brands said. Executive pay will be cut by 20%, and employees not working to support online sales and those who cannot work from home are furloughed effective April 5. "All furloughed associates will continue to receive existing healthcare benefits. As circumstances change, L Brands will make every effort to bring these associates back to work as soon as possible," L Brands said, without specifying the number of employees. The company also extended store closures and said its salespeople will continue to receive pay and benefits through April 4, one week longer than originally announced. L Brands said it has more than $2 billion in cash, and the cash balance plus Friday's measures will "sufficient current liquidity." Shares of L Brands have lost 51% in the past 12 months, which compares with a drop around 8% for the S&P 500 index .
L Brands, Inc. (LB) today provided additional updates on actions it is taking, following its initial March 17, 2020 announcement related to the novel coronavirus pandemic (COVID-19). On March 17, 2020, L Brands announced the temporary closure of all Bath & Body Works, Victoria’s Secret and PINK stores in the United States and Canada through March 29, 2020. Based on the continued spread of COVID-19 and stay-at-home orders by government officials across the country, the company is extending the closure of its stores beyond the initial March 29 date.
Coronavirus is probably the 1 concern in investors' minds right now. It should be. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW. We predicted that a US recession is imminent and US stocks will go down by at least 20% in the next 3-6 […]
During Tuesday night's Mad Money program the Lightning Round was not interrupted by a White House announcement. In the weekly bar chart of LB, below, we can see that prices have been in a downtrend for the past three years. The 40-week moving average line is bearish and so are the On-Balance-Volume (OBV) line and the Moving Average Convergence Divergence (MACD) oscillator.
(Bloomberg Opinion) -- You really can’t blame Mike Ashley for trying.The billionaire founder of Frasers Group Plc tried to keep his sporting goods stores open, arguing that they provided essential supplies of fitness equipment to self-isolating Britons. The retailer has since made a U-turn, closing its Sports Direct and Evans Cycles stores on Tuesday as the U.K.’s nationwide lockdown took effect.Ashley may be everyone’s favorite pantomime villain — and his brash attempt to keep stores open prompted a backlash from politicians — but as usual, the entrepreneur isn’t totally off point. People around the world are asking themselves exactly what they may need to stay healthy and sane as they hunker down at home to ride out the coronavirus crisis.There seems to be some logic missing in the categories that the British government has deemed essential and non-essential. Some are obvious: supermarkets and pharmacies, for example, should stay open. Clothing shops are clearly far less necessary. Many, including Next Plc, Arcadia Group Ltd.’s Topshop and Primark, the budget fashion chain owned by Associated Foods Plc, had already closed their doors.But other categories are more ambiguous. Why are bicycle shops deemed more essential than electronics and home appliance retailers? Dixons Carphone Plc was among the chains lobbying to be given essential status. The group has now shuttered stores. (Frasers closed Evans Cycles anyway while seeking more clarity from the government.)The government argues that bicycle shops are crucial to help workers get around while avoiding public transport. But surely with many Britons now forced to work from home, it’s also imperative for people to be able to buy computer and phone gear they didn’t know they really needed until now. If they’re out buying food, shouldn’t they be able to buy a cable or a printer too? And what if the washing machine breaks? Many large electronics and appliance stores are conveniently located in the same retail parks as supermarkets.True, people can order via the internet, and many sales will indeed migrate to this channel. But there is a danger that with so many online orders for essential items, delivery capacity for anything else won’t be able to keep up.And filling one’s virtual supermarket shopping cart with things like an extension cord or two, in order to collect it from their local store, risks putting more pressure on staff who are busy filling shelves with staple items and keeping up with an influx of panic-buyers.Kingfisher Plc, which owns B&Q in the U.K. and Castorama in France, has closed its U.K. DIY estate while it looks to find the best ways to still provide essential items. Its Screwfix business, which serves tradesmen, has moved to “click and collect” only. That may be a model worth trying to alleviate some of the issues created by the lockdown, as well as opening only a limited number of stores as Halfords Plc is set to do. This could ensure much needed goods are available while discouraging shopping sprees.The debate about the right approach to take comes as retailers are facing a catastrophic loss of trade. Trying to do everything to salvage some sales is only logical. Especially as the shutdown could not have come at a worst time with quarterly rent payments due tomorrow.Of course retailers that do stay open must be conscious of protecting not only customers, by respecting social distancing best practices, but also their own staff, who need gloves and masks for example. At some point the virus will abate, and chains will want to emerge with their reputation in tact.But it’s a difficult balance to strike. And it is one that chains in the U.S. are facing as well as the virus case count increases there, although many companies, including Nike Inc., Apple Inc. and L Brands Inc.’s Bath & Bodyworks, have already closed their stores.It’s important the government help British chains find the equilibrium they need to weather this crisis.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Market researchers at RBC Capital, led by Lori Calvasina, head of the bank’s US Equity Strategy, have analyzed current conditions, comparing them to past recessions, and see the coming downturn as both short and mild. They based their conclusions on the behavior of the S&P 500 during downturns since 1937.Getting into specifics, Calvasina’s team says of current conditions, “Our new YE 2020 S&P 500 price target of 2,750 implies a 15% drop for the full year, as well as a 15% rebound from recent levels… we continue to believe that the bulk of the stock market impact from the coronavirus will be felt early in the year, with the bulk of the economic impact coming in the middle of the year…”Looking ahead, the RBC team believes that the rebound will be longer-lasting than the drop. They write, “For 2021, we assume that the economic recovery will continue into the new year, and we have also modeled a single Fed rate hike in 2Q21, a modest increase in the 10-year yield, a slight rebound in oil prices, modest margin expansion, and the return of share buybacks to a pace slightly below that of 4Q19.”Turning from the macro view, RBC’s stock analysts have pinpointed high-yield dividend stocks with even higher upside potential – just the sort of opportunity that should attract return-minded investors in preparation for a market turnaround. Not all high returns are created equal, however, and RBC sees two of these as Buy-side, while leaving one as a Hold. We’ve used TipRanks database to pull the details on RBC’s picks. Let’s dive in.Enterprise Products Partners (EPD)RBC’s first Buy-rating goes to an oil and gas midstream company. Enterprise controls and operates over 50,000 miles of oil and gas pipelines, as well as facilities for the storage of 160 million barrels of oil and 14 billion cubic feet of natural gas, and shipping terminals on the Texas Gulf Coast. These are valuable assets, as they are essential for moving fuel into the economy, and they retain their worth no matter what the economic conditions – after all, there is always a need for fuel.Enterprise came into the current market downturn on a sound note, having reported better than expected Q4 earnings and revenues in the first week of February. The company showed 54 cents EPS on total quarterly revenue of $8.01 billion. Both numbers were up sequentially from Q3.RBC focused on dividend stocks, and EPD measures up. The company’s 44.5-cent quarterly payment annualizes to $1.78, and it has an 11-year history of keeping up reliable payments. The dividend has been increased gradually over the past three years, and the payment ratio of 82% indicates that there is still room available for further increases. And at 12.2%, the yield is simply stellar.In his comments on the stock, Schultz wrote, “We like EPD for the expansive asset footprint that is ideally situated to benefit on the key downstream export markets across multiple product streams. We also see growing FCF in 2019 as EPD dials back growth capex and puts in service new processing, frac, and export capacity. EPD remains a core holding, in our view.” (To watch Schultz’s track record, click here)5-star RBC analyst TJ Schultz Schultz backed his Buy rating with a $29 price target, implying an impressive upside of 125% for the coming year.EPS stock has a Strong Buy rating from the analyst consensus, based on 10 recent reviews. These include 9 Buy-side against a single Hold – a clear indication of collective confidence in the stock. EPS is selling for a discount price, $14.56, and the average price target of $26.89 suggests an upside potential of 85%. (See EPD stock analysis on TipRanks)Pembina Pipeline (PBA)Sticking with the oil and gas midstream business, RBC switched its focus north to Canada. Pembina is a major player in Western Canada midstreaming, with gas processing plants and pipelines throughout the Alberta-British Columbia oil and gas production regions. Pembina’s facilities and pipelines gather fuel and transport it across the border, through the Bakken field in the US state of North Dakota, and onward to export points on the Great Lakes.Declining energy costs on the open markets and long transit pathways put pressure on Pembina’s margins in recent months. The company reflected that in its Q4 earnings, which missed expectations and were down from year-over-year. In US currency, EPS came in at 16 cents against the 42 cents forecast. Revenue did better, growing yoy from $1.31 billion to $1.33 billion – although it did miss the estimates by 3.25%.PBA uses its earnings to keep up the dividend payment. The company has raised the payment twice in the last three years, and currently pays out 16 cents per share monthly. It’s uncommon for a company to pay out a dividend that frequently, but PBA manages it. The payments annualize to $1.88 (based on the last 12), and give a yield of 11.7%. Even better for investors, PBA has a four-year history increasing the payout. The next payment is due to be paid on March 24.Covering Pembina for RBC, 5-star analyst Robert Kwan describes this stock as “…disproportionately hit versus its peers based on concerns about counterparty exposure as well as Pembina’s own credit rating…” On the subject of PBA’s prospects, Kwan adds, "We applaud the company for taking decisive and tangible steps in the face of considerable market uncertainty. While the stock is under pressure, we have confidence in its long-term value and recommend that patient, long-term focused investors buy the stock while clipping a sizable dividend yield and waiting for the potential upside to materialize."In line with his comments, Kwan sets a price target on PBA of C$26, equating to USD$18 US at today’s exchange rate. This implies an upside for the stock of 18%. (To watch Kwan’s track record, click here)Pembina’s Strong Buy analyst consensus rating is unanimous, based on 12 recent Buy-side reviews. The stock is currently selling for C$23.13, or US$16.09, and the average price target of C$50.72 (US$35.28) suggests a strong 126% upside potential in the coming 12 months. (See Pembina stock analysis on TipRanks)L Brands, Inc. (LB)Last on the list RBC’s Hold call, L Brands. A rebranding of The Limited, this Ohio-based company has long owned well-known shopping mall staples Victoria’s Secret and Bath & Body Works. In a move made public last month, L Brands will be selling 55% of Victoria’s Secret to private equity firm Sycamore Partners, and that company CEO Leslie Wexner will step down after completion of the sale. The move will leave Bath & Body Works as the company’s only wholly owned brand, although it will retain a 45% interest in Victoria’s Secret.The fourth quarter, coming in the holiday shopping season, is L Brands’ strongest, and Q4 2019 was no exception. The company reported $1.88 in EPS, beating the forecast by 1%. Revenue also beat estimates, by a minimal 0.05%, and came in at $4.71 billion. The top line was down 2.8% year-over-year, however; an ominous sign entering Q1 2020. The current quarter has seen mall businesses buffeted by quarantines and social distancing restrictions, and retail is down across the board. LB forecasts a Q1 net loss of 5 cents per share when it reports in May.The company has been careful to maintain its dividend through these difficult times, paying out 30 cents per quarter. The annualized rate, $1.20, gives an impressive yield of 12.3%, and the payout ratio of 64% indicates that, at current income levels, the dividend is sustainable.RBC, however, wants to sit this one out, despite the high-yield dividend. The company is in the midst of a divestiture, and facing severe headwinds along with the rest of the retail sector. In comments on the stock, analyst Kate Fitzsimons says, “While we agree the math on a standalone BBW suggests value unlock, we remain comfortable on the sidelines as the next leg up in LB shares is likely to take time, with the bears focusing on mall exposure and sustainability of 20%+ margins, and the bulls on BBW's superior profitability and cash flows.”While she will wait to see if who is right, the bears or the bulls, on this one, Fitzsimons did ‘tweak’ her price target, raising it to $24 and suggesting an upside of 145%. That would imply she’s with the Bulls – but for now, she calls this one a Hold. (To watch Fitzsimons’ track record, click here)L Brands gets a Moderate Buy from the analyst consensus, reflecting Wall Street’s divided opinion on the stock. The rating is based on 24 reviews, including 8 Buys, 14 Holds, and 2 Sells. Shares are selling for a low $9.78, and the average price target of $27 reflects the possible rewards of a risky stock, in a 176% upside potential. (See L Brands stock analysis on TipRanks)
Investors in retail stocks should brace for aggressive dividend cuts, a research note concludes. “Retail stores are closed en masse and mall traffic is down 90-100% across the U.S. after most announced two-week closures,” observe the retail analysts at Jefferies. The S&P 500’s consumer discretionary sector is down about 24% this year, roughly in line with the S&P 500’s performance.
L Brands is suspending part of its e-commerce business in order to focus on production and distribution of soaps and hand sanitizers.
(Bloomberg Opinion) -- Closeageddon is how analysts at Jefferies are describing the retail store shutterings in the U.S.With chains run by big names such as Nike Inc, Apple Inc and Hennes & Mauritz AB closing doors, and icons including Macy’s and Bloomingdale’s joining them, the challenge facing the sector is worsening.Adidas AG warned last week that the suspension of store trading in China would cost it about $1 billion in lost sales. Add in closures across the U.S. and Europe, and multiply that by the number of household names retreating, and the bill to the retail industry may be astronomical.Stacey Widlitz of SW Retail Advisors estimates first quarter revenue will be down by 50-70% on average for global retailers.While sales are evaporating, overheads still need to be paid. This brings into focus the financial strength of parts of the global sector. Those that have been doing well for a long time, including Nike Inc. in the U.S. and Industria de Diseno Textil SA (Inditex) in Europe should have the resources to cope. H&M has little borrowing.But many retailers were already struggling going into this crisis – think of some of the U.S. department stores. Those trying to implement turnarounds, such as Victoria’s Secret, which parent L Brands Inc. has agreed to partially sell, and Under Armour Inc. now face additional hurdles.Gap Inc. has been trying to revive its namesake brand. At least its balance sheet is in decent shape. The same can’t be said for the likes of JC Penney Co Inc. and J Crew Group Inc., the private-equity owned clothing retailer that plans to spin off its Madewell unit to cut debts. With markets experiencing unprecedented volatility, there must be a question mark over this transaction, and maybe even the Victoria’s Secret deal.Retailers would ideally want to stand by staff for as long as they can. It may be hard to imagine at present, but when the virus eventually recedes and activity picks up stores will need their workforces. Yet the pressures to cut back will be immense. The likely first move will be to reduce the temporary workforce.Self-help measures are limited. Stock can in theory be moved from shuttered markets to those where there is still demand. The trouble is, with large swathes of Europe and increasing numbers of U.S. cities in lock-down, the regions where non-essential shopping is even permissible are dwindling.Speaking to suppliers about delaying orders, or even cancelling them, particularly if Asian manufacturers are experiencing backlogs, may provide some respite.Where businesses operate from leased sites, landlords will have a role to play. Struggling tenants and mall owners need to have a grown-up conversation about whether payments can be deferred or rents reduced. With demand shifting from physical stores to online for the past decade, landlords are already bruised. But they are in this crisis together with retailers. The mall owners can ill afford more vacant lets. It would be wise to take steps to prevent that now.Such measures will only go so far. The case for targeted government support is pretty clear. One possibility is cheap state-backed loans, as the U.K. announced on Tuesday. In practice, such support may end up helping firms that were already uncompetitive. That may be the price to pay.Tax breaks are another. Again, British retailers have long sought a reduction on property-based “business rates”, which they argue unfairly punishes chains with large bricks and mortar estates. They just got a 12-month holiday from the tax.On both sides of the Atlantic, arrangements are needed so that suppliers can still insure themselves against retailers going bust before they have settled for ordered goods. That risk is elevated right now. If insurance companies pull cover, retailers may be forced to pay for stock up front, putting even more pressure on already strained cash flows. Government can help.Retailers, landlords and lenders will have to come to some accord with each other. Even then, they will struggle to get through this on their own.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Investors see the coronavirus’ fallout threatening the economically sensitive group, which tends to see its performance suffer more than larger companies in recessions.