|Bid||152.41 x 800|
|Ask||155.79 x 1300|
|Day's Range||155.01 - 157.87|
|52 Week Range||145.42 - 191.49|
|Beta (3Y Monthly)||0.53|
|PE Ratio (TTM)||20.72|
|Earnings Date||Oct 23, 2019 - Oct 28, 2019|
|Forward Dividend & Yield||8.40 (5.43%)|
|1y Target Est||179.00|
(Bloomberg Opinion) -- Two big names in clothing retail are getting smaller. Gap Inc. laid out the details last week of its previously announced plan to split into two companies — one that is solely its Old Navy chain, and another for everything else. Meanwhile, J. Crew Group Inc. made it official last week that it plans to spin off its Madewell chain.Both of these splits are the right moves for two apparel businesses that have oddly similar problems: Their newer chains are doing well, but their older ones are struggling.(1) The breakups will allow executives to focus more intently on the troubled brands’ problems.But the plans are still risky, on their own terms and because of larger complications introduced by President Donald Trump’s trade war. The last month or so has amped up enormous tariff-related uncertainty for the apparel industry, as Trump moved to slap levies on $300 billion worth of Chinese goods, only to soon delay some of them. Clothing retailers tend to say they will deal with this situation by negotiating with suppliers. Scale is a huge asset in such negotiations, with the biggest companies having the most leverage. Once the Gap and J. Crew empires split, they will have less muscle to flex in these discussions.A similar dynamic exists with their relationships to their mall landlords. Consider the latest in the saga of another mall heavyweight, Forever 21. My colleagues at Bloomberg News reported this week that the company is holding discussions with Simon Property Group Inc. and Brookfield Property Partners LP about the mall operators buying a stake in the clothing chain as part of a potential bankruptcy filing. It would be similar to when landlords stepped in to save teen clothing chain Aeropostale; the landlords apparently decided owning a piece of an ailing retail chain was preferable to being stuck with a raft of vacancies.Several retail giants have filed for bankruptcy since that 2016 Aeropostale deal without mall operators intervening. But Forever 21 might be different, in part because of its scale: With more than 800 stores, landlords may believe that it is, to steal a popular phrase from another industry, too big to fail. A question for Gap and J. Crew is whether their splits leave them too small to matter.Of course, some of J. Crew and Gap’s peers are also slimming down, meaning they might be dealing with similar hurdles. Ascena Retail Group Inc. has sold its Maurice’s chain and is shuttering Dressbarn; Bloomberg News reported Thursday it is now considering unloading its Catherines and Lane Bryant brands. L Brands Inc. has closed its small Henri Bendel chain and sold La Senza – tiny parts of its business, to be sure. But it continues to face questions from investors about whether it should separate Victoria’s Secret and Bath & Body Works, a move that would greatly change its scale. Overall, the benefits of a sharper focus (and, in J. Crew’s case, the ability to use IPO proceeds to pay down some debt) will probably make these separations worthwhile. But even the best breakups are challenging — and the uncertain trade and mall retail environments are likely to make them even more so.(1) Old Navy's comparable sales have slipped in the two most recent quarters, but it has been the crown jewel of the company for years.To contact the author of this story: Sarah Halzack at firstname.lastname@example.orgTo contact the editor responsible for this story: Michael Newman at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Realty Income's (O) October dividend payment marks the company's 591 successive monthly dividend payments and 88 consecutive quarterly increases through its 50-year operating history.
(Bloomberg) -- Forever 21 Inc. is in discussions to give a stake in the company to its two largest landlords as part of a restructuring that would allow co-founder Do Won Chang to retain a share, according to people familiar with the matter.The ailing fast-fashion retailer is in talks with Simon Property Group Inc. and Brookfield Property Partners LP about the proposal, which would be part of a bankruptcy filing, said the people, who asked not to be identified discussing a private matter. The negotiations are ongoing, and could end without a deal, they said.Los Angeles-based Forever 21 is preparing to file for bankruptcy as soon as this month, ideally with a restructuring plan in place, the people said. Company advisers have been working on obtaining a bankruptcy loan package that would give the retailer about $75 million to continue operations during the case, Bloomberg previously reported.A spokeswoman for Brookfield declined to comment on its involvement in a potential deal, and Simon and Forever 21 didn’t respond to requests for comment.Aeropostale DealThe trendy retailer’s fate has become increasingly important to mall owners, who’ve seen former stalwarts including Payless Inc. and Gymboree Corp. shutter more than 8,500 stores this year, according to firm Coresight Research Inc. That’s left Forever 21 as one of the largest remaining occupants, with more than 800 stores globally.At the same time, the retailer is dependent on its landlords, which could play a crucial role as it looks to slim down operations and revive its best locations. The restructuring plan under discussion could include rent forgiveness or other considerations from the landlords in exchange for a stake in Forever 21, the people said.Simon and General Growth Properties Inc., now part of Brookfield, teamed up to buy most of bankrupt teen clothing chain Aeropostale three years ago. They’ve since sat on the sidelines as retailers liquidated, but Simon has publicly said it’s open to doing similar-type deals going forward.On a July 31 conference call with investors to discuss second-quarter earnings, Simon Property Group Chief Executive Officer David Simon said his company was well-positioned to invest in distressed tenants.“We certainly have the ability to help beyond what you might do on the leases and become an investor in a distressed situation,” Simon said. “So we have kind of the ability, together or individually or some combination thereof, to look at becoming more than just a real estate player, but a buyer of these brands.”\--With assistance from Natalie Wong.To contact the reporters on this story: Lauren Coleman-Lochner in New York at firstname.lastname@example.org;Eliza Ronalds-Hannon in New York at email@example.com;Scott Deveau in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Rick Green at email@example.com, Nicole Bullock, Shannon D. HarringtonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Realty Income (O) poised to benefit from solid investments, and focus on service, non-discretionary and low-price retail business tenants.
Three new retailers recently opened at Arizona Mills in Tempe, including a first-of-its-kind concept, while a fourth tenant is set to open early next month. The shopping center, which is owned by Indianapolis-based Simon Property Group (NYSE: SPG), welcomed two apparel stores as well as a discount retailer. “We are constantly working to offer a diverse mix of stores that meet the many preferences of our guests, so we are excited to introduce these well-known brands at value prices that the whole family will appreciate,” said Munira Smith, director of marketing at Arizona Mills, in a statement.
Simon Property's (SPG) moves to bring iconic brands, emerging and digitally native ones to its malls likely to boost footfall by grabbing attention of tech-savvy shoppers valuing in-store experiences.
INDIANAPOLIS , Sept. 4, 2019 /PRNewswire/ -- Simon, a global leader in premier shopping, dining, entertainment and mixed-use destinations, announced today that its majority-owned operating partnership ...
INDIANAPOLIS, Sept. 4, 2019 /PRNewswire/ -- Simon®, a global leader in premier shopping, dining, entertainment and mixed-use destinations announced that Jockey International, Inc. (Jockey), a 143-year-old brand recognized around the world for its premium underwear and apparel, will open its first-ever pop-up retail store at the edit @ Roosevelt Field – an innovative, turn-key opportunity for brands at Roosevelt Field, a Simon property. The 1,700 sq. foot store will feature a contemporary assortment of men's and women's undergarments, activewear, sleepwear and loungewear catering to the modern New Yorker's active lifestyle, including the popular underwear bar.
HSBC Holdings PLC, Altria Group Inc., 3M Co. and Simon Property Group Inc. have declined to their respective three-year lows Continue reading...
Specialty retailer Forever 21 was founded in 1984 by a Korean couple who wanted to bring Korean-themed fashion items to the U.S. market. The chain is reportedly close to filing for bankruptcy, Bloomberg ...
While Macerich's (MAC) moves to revamp its properties, leasing of co-working spaces and portfolio expansion will stoke the company's long-term growth, the e-retail boom might impede near-term growth.
(Bloomberg) -- Forever 21 Inc. is preparing for a potential bankruptcy filing as the fashion retailer’s cash dwindles and turnaround options fade, according to people with knowledge of the plans.The company has been in talks for additional financing and working with a team of advisers to help it restructure its debt, but negotiations with possible lenders have so far stalled, the people said. Focus has thus shifted toward securing a potential debtor-in-possession loan to take the company into Chapter 11, they said, even as some window remains to strike a last-minute deal that keeps it out of court.Representatives for Forever 21 didn’t respond to a request for comment.A bankruptcy filing would help the company shed unprofitable stores and recapitalize the business, said the people, who requested anonymity discussing private negotiations. Yet it could also be problematic for the country’s major mall owners, including Simon Property Group Inc. and Brookfield Property Partners LP. Forever 21 is one of the biggest mall tenants still standing after a wave of bankruptcies in the retail sector.Empty SpacesIf the chain were to close a significant number of stores as part of the restructuring, its landlords could have trouble filling the vacancies. Indianapolis-based Simon counts Forever 21 as its sixth-largest tenant excluding department stores, with 99 outlets covering 1.5 million square feet, according to a filing as of March 31.Co-founder Do Won Chang has been focused on maintaining a controlling stake in Forever 21, which has limited its fundraising options.A faction of company officials, without the approval of Chang, had asked its biggest landlords to consider taking a stake in the retailer amid a disagreement within its leadership, Bloomberg previously reported.Founded in 1984, Forever 21 operates more than 800 stores in the U.S., Europe, Asia and Latin America.(Adds potential impact of a bankruptcy on mall owners beginning in fourth paragraph.)\--With assistance from Boris Korby and David Scheer.To contact the reporters on this story: Eliza Ronalds-Hannon in New York at firstname.lastname@example.org;Lauren Coleman-Lochner in New York at email@example.comTo contact the editors responsible for this story: Rick Green at firstname.lastname@example.org, Dawn McCarty, Rizal TupazFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Rating Action: Moody's affirms fourteen classes of MSBAM 2013- C10. Global Credit Research- 27 Aug 2019. Approximately $1.22 billion of structured securities affected.