GPS - The Gap, Inc.
18.71 0.00 (0.00%)
After hours: 4:43PM EDT
| Previous Close | 18.72 |
| Open | 18.86 |
| Bid | 18.73 x 1400 |
| Ask | 18.71 x 4000 |
| Day's Range | 18.43 - 18.99 |
| 52 Week Range | 17.12 - 32.98 |
| Volume | 7,140,157 |
| Avg. Volume | 6,010,892 |
| Market Cap | 7.072B |
| Beta (3Y Monthly) | 0.81 |
| PE Ratio (TTM) | 6.74 |
| EPS (TTM) | 2.78 |
| Earnings Date | Aug 21, 2019 - Aug 26, 2019 |
| Forward Dividend & Yield | 0.97 (5.18%) |
| Ex-Dividend Date | 2019-07-09 |
| 1y Target Est | 21.63 |
- Business Wire•6 hours ago
Gap Inc. Announces Nancy Green to Join Old Navy as President and Chief Creative Officer
In this new role, Nancy will lead Old Navy’s design, production, merchandising and marketing functions, and will report to Sonia Syngal, President and CEO of Old Navy. While a search is underway for Athleta’s next president, the brand’s well-established leadership team will report to Gap Inc. Chief Executive Officer Art Peck.
- PR Newswire•13 hours ago
Gap Celebrates Back To School with the Launch of 'Forward' Campaign Featuring a Cast of Bold Kids who are Breaking Boundaries
NEW YORK, July 23, 2019 /PRNewswire/ -- Gap, the iconic American clothing brand, today launches the GapKids 'Forward' Back To School campaign. Set to an original version of Guns N' Roses' "Sweet Child O' Mine," the 'Forward' hero campaign video encourages kids to push forward into a world of their own creation.
- American City Business Journals•2 days ago
Women's retailer will open second Triad store
Athleta, an upscale retailer specializing in lifestyle active wear and owned by The Gap Inc. (NYSE: GPS), is scheduled to move into Thruway Center in Winston-Salem, Triad Business Journal has learned. Athleta will move into an 8,900-square-foot space just two doors from Trader Joe's in the shopping center's main row of tenants facing Stratford Road near Interstate 40 Business. No name is displayed at the site, and owner Saul Centers Inc., a real estate investment trust based in Bethesda, Maryland, did not return messages from TBJ during the past two weeks.
- Investopedia•5 days ago
Can a Family Survive on the U.S. Minimum Wage? (WMT, COST)
As the political debate roars on, the numbers are clear: Even two full-timers at U.S. minimum wage can't keep a family of four above the poverty line.
- Zacks•8 days ago
3 Sportswear Stocks to Buy as Q2 Earnings Season Heats Up
Welcome to the latest episode of the Full-Court Finance podcast from Zacks Investment Research where Associate Stock Strategist Ben Rains takes a look at three sportswear stocks to consider buying as the second quarter 2019 earnings season kicks off.
- Zacks•9 days ago
Amazon Prime Day 2019: What Does This Mean for the Company Moving Forward?
Amazon (AMZN) kicked off its annual Prime Day Monday, exclusively offering a vast variety of deals for its Prime members.
- Yahoo Finance•9 days ago
Prime Day deals Amazon doesn't want you to see
If you can’t beat them, join them. That’s the mantra the entire retail world has adopted ahead of Amazon Prime Day.
- Bloomberg•12 days ago
Nordstrom Really Needs an Anniversary Sale Win
(Bloomberg Opinion) -- If you’ve spent any time in the Instagram fashion bubble recently, you probably know that Nordstrom Inc. is holding a massive promotional event that kicks into high gear on Friday. It’s called the Anniversary Sale, and it’s a weeks-long run of price reductions on new merchandise that the retailer has done a remarkable job of getting the fashion influencer-set to hype.(2)This time around, the deals bonanza represents an especially important test for the department store. Some of it has to do with the timing. Wall Street sentiment has curdled on this chain in recent months. In fact, Nordstrom is the worst-performing stock in the S&P 500 Index year-to-date. (Fellow department store heavyweights Macy’s Inc. and Kohl’s Corp., it should be noted, aren’t far behind.)A particularly sharp drop in share price came after its first-quarter earnings report, which rightly set off alarm bells for investors. Sales sank 3.5% from a year earlier in that period as a result of a raft of missteps: It changed how it distributed rewards to loyalty program members and that didn’t go well; it was out of stock on key beauty items; and didn’t have the right mix of entry-level and higher-price items in its women’s clothing business. That pricing issue might be a particular concern. UBS retail analyst Jay Sole wrote in a July research note that, in his recent customer survey, 5% more shoppers said Nordstrom has become more expensive than said so last year. Of course, Nordstrom isn’t aiming to be a discount retailer; weakening price perception would be a worse finding for, say, Kohl’s. But this still represents a risk that Nordstrom is alienating one-time devotees and could fail to attract younger shoppers. The Anniversary Sale, with its bounty of deals, is a good opportunity to chip away at that perception. But I’m going to be watching more than the price tags. It’ll be important to see whether Nordstrom is able to stay in-stock on those entry-price items, as well as particularly trendy ones, through the early days of the sale. I’ll also have an eye out for any website glitches that might frustrate online shoppers. During last year’s event, the company had to apologize for website problems; the site also had issues the previous year amid the surge in visits. Nordstrom needs to demonstrate it has learned from those mistakes and has invested technology resources appropriately to move past them.Big sale events sometimes can seem meaningless these days, when the likes of Gap Inc. and Macy’s seem to be having a promotion practically every day of the week. And another splashy deals event – Amazon.com Inc.’s coming Prime Day – seems to be taking up quite a lot of retail-industry oxygen.But the Anniversary Sale really matters for Nordstrom. The company indicated as much in its annual report:“Due to our Anniversary Sale in July and the holidays in the fourth quarter, our sales are typically higher in the second and fourth quarters than in the first and third quarters of the fiscal year. Any factor that negatively impacts these selling seasons could have an adverse effect on our results of operations for the entire year.”I still think Nordstrom has many advantages compared to its apparel-industry peers, including its not-bloated store fleet, its strong customer service, and its potentially potent idea for small-format local service centers. But for now, Nordstrom badly needs a win in the second quarter. Strong execution of this deals event will help determine whether it gets one.(1) Loyalty members who are top-tier spenders got access to the sale previously, but Friday is the kickoff for the masses, when any Nordstrom cardholder can start shopping.To contact the author of this story: Sarah Halzack at shalzack@bloomberg.netTo contact the editor responsible for this story: Beth Williams at bewilliams@bloomberg.netThis 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.
- Bloomberg•12 days ago
Zara's Hot Polka Dot Dress Beats Big Data
(Bloomberg Opinion) -- A $69.90 polka dot dress from Zara has become the fashion hit of the summer. Despite little email or social media promotion from the chain, the flowy, universally flattering mid-length frock has become so ubiquitous that someone has created an Instagram account to collect sightings of it out in the fashion wilds – including several that appear to show multiple women wearing it to the same event.The frenzy around the garment epitomizes the ability of the brand’s parent, Inditex SA, to ride a sartorial wave.But the company, founded by Spain’s richest man, Amancio Ortega, is coming under intensified pressure. Rivals in the U.S. and Europe are catching up to its short production lead times. Meanwhile, cheaper upstarts such as Associated British Foods Plc’s Primark and Boohoo Group Plc, are burnishing their fashion credentials.There is no doubt that Inditex’s business model has served it handsomely for more than four decades. But its approach must prove its mettle now more than ever. Otherwise, its advantages risk being gradually whittled away, along with the group’s industry-leading profitability.The retailer, of course, is famous for its fast supply chain. Many competitors order from factories at least six months in advance. But Inditex’s brands, led by Zara, which accounts for about 70% of group sales, produce most of their garments within the current fashion season. About 57% of products are made close to its headquarters in Arteixo, northern Spain, including at facilities in Portugal, Morocco and Turkey. This means Zara clothes can go from design to shop floor within a matter of weeks.Just as important as the tempo is its unique process of developing ideas.It starts with Zara’s army of store managers, who communicate what’s selling and what trends are emerging to the commercial team within Inditex’s sprawling head office. This is not some complex exercise in big data; it’s a conversational approach to absorbing what shoppers want. Designers, who sit nearby, incorporate that feedback into their creations.This has all added up to spectacular growth. But, not only is the company maturing, the competitive landscape has become more difficult. Progress from here will be much harder work.Social media makes it easier for all retailers to see what is hot. Just take those polka dots: Even Topshop, now widely regarded as a bit of a fashion has-been, also managed to produce a stand-out spotty dress. At the same time, retailers from Britain’s Next Plc to Gap Inc. in the U.S. are finally shortening their supply chains. They are still not as speedy as Inditex, but they are narrowing the gap.Another risk is the rise of online shopping. Most stores find that the high cost of fulfilling these sales squeezes profitability. But Inditex’s process is not all that different from what it’s already doing, and that helps shield its margins from the digital onslaught. Store managers telling the head office that they need three puff-sleeve blouses and two pairs of chunky sandals is similar to an individual placing the same order from her laptop. Indeed, Inditex is fond of pointing out that it was a digital company long before the rise of e-commerce.Despite all of its advantages, Inditex’s operating margin has been shrinking for the past six years. Consequently, the group is opening fewer, larger stores, and plans to increase space in prime locations by 5-6% this year. This is the right strategy, but it means that it won't be able to count on large-scale store openings to boost revenue growth. The company is also overhauling its management. Pablo Isla, executive chairman since 2011, will cede his chief executive officer role to Carlos Crespo. By elevating the chief operating officer to the top job, Inditex is clearly trying to wring the maximum benefit from the business model, in order to continue to stay ahead of rivals.At its heart is fashion. We’re at a moment in apparel retailing in which technology is often framed as the lynchpin of any success or turnaround. Investors have been dazzled by newcomers StitchFix Inc. and Revolve Group Inc., which tout their ability to use algorithms to create and buy the right product selection. Executives from the likes of Gap and American Eagle Outfitters Inc. emphasize more personalized digital experiences as a way to win over customers.And while Zara counts on technology, such as by using radio frequency identification to know exactly where every organza halter-neck top and utility boiler suit is, much of its dominance is actually due to something more old-school: it knows how to make clothes that people want – even before they do.Though cost control is always important, what will be crucial for Crespo is ensuring that Zara’s fashion compass stays perfectly calibrated. Putting style at the center of everything the company does is essential, not only to ensure that Zara can continue to charge a premium for the latest looks, but also for ensuring it doesn't emulate rival Hennes & Mauritz AB and end up with a pile of unsold stock.As sales growth has slowed in recent years there have been questions as to whether Inditex has retained its fashion flair, particularly with fewer discernible trends to chase.That polka-dot dress shows that it is still capable of churning out the blockbusters. To stay ahead of increasingly nimble rivals, it must produce a steady stream of equally Instagram-friendly fashion hits.To contact the authors of this story: Andrea Felsted at afelsted@bloomberg.netSarah Halzack at shalzack@bloomberg.netTo contact the editor responsible for this story: Jennifer Ryan at jryan13@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or 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.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.
- Investopedia•13 days ago
4 Retail Brand Names Plunging Amid Bull Rally Face More Declines
Four of the market's premier retail brick and mortar stocks - Macy's Inc. (M), Gap Inc. (GPS), Kohl's Corp. (KSS) and Nordstrom Inc. (JWN) - have seen their shares plunge this year, all making the list of the S&P 500’s five worst performing stocks year-to-date (YTD). Meanwhile, the broader market has rallied to new highs, with the S&P 500 up 19.4% in 2019. Meanwhile, the traditional retailers will have to move quickly to fight off newer competitors adapt to new commerce trends to catch up, as outlined in a recent Wall Street Journal report.
- Financial Times•13 days ago
Marks and Spencer loses fourth clothing boss in a decade
Marks and Spencer has lost its fourth clothing chief in a decade as the British retailer struggles to turn round the business and attract younger customers. Jill McDonald, managing director of M&S’s clothing and home arm for just over 18 months, will step down with immediate effect, the company said. Steve Rowe, chief executive, said Ms McDonald had created a “strong platform for the transformation” of the clothing business, but the company “now needs to move on at pace to address longstanding issues in our clothing and home-supply chain”.
- Simply Wall St.•14 days ago
Is The Gap, Inc. (NYSE:GPS) A High Quality Stock To Own?
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like...
- Markit•15 days ago
See what the IHS Markit Score report has to say about Gap Inc.
Gap Inc NYSE:GPSView full report here! Summary * Perception of the company's creditworthiness is neutral * Bearish sentiment is moderate * Economic output in this company's sector is expanding Bearish sentimentShort interest | NeutralShort interest is moderate for GPS with between 5 and 10% of shares outstanding currently on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | NeutralETF activity is neutral. The net inflows of $4.55 billion over the last one-month into ETFs that hold GPS are not among the highest of the last year and have been slowing. Economic sentimentPMI by IHS Markit | PositiveAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Services sector is rising. The rate of growth is strong relative to the trend shown over the past year. Credit worthinessCredit default swap | NeutralThe current level displays a neutral indicator. GPS credit default swap spreads are within the middle of their range for the last three years.Please send all inquiries related to the report to score@ihsmarkit.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
- Benzinga•16 days ago
Wedbush Favors Off-Price Retail, Says Nordstrom's Search Interest 'Took A Nose Dive'
Department stores continue to underperform Wedbush's greater retail coverage, and Nordstrom, Inc. (NYSE: JWN ) search trends “incrementally nose in recent weeks," the sell-side firm said ...
- TheStreet.com•17 days ago
With a Little Belt-Tightening, Gap Should Put Cash in Investors' Pockets
While certainly no growth story, the Gap has a 5.3% dividend yield and is getting expenses under control to become an attractive stock for value- and income-investors.
- MarketWatch•19 days ago
PagerDuty’s Jennifer Tejada is ‘not your typical CEO’ in Silicon Valley, but hopes to change that
Jennifer Tejada is an improbable Silicon Valley CEO but a likely template for its foreseeable future. She’s part of a wave of executives at enterprise-software companies in the San Francisco Bay Area that are leaving an imprint with flashy financial results, business models that resonate with investors, and socially conscious policies.
- Zacks•19 days ago
Chipotle Mexican Grill, Gap, Intevac, Adesto Technologies and Digital Turbine highlighted as Zacks Bull and Bear of the Day
Chipotle Mexican Grill, Gap, Intevac, Adesto Technologies and Digital Turbine highlighted as Zacks Bull and Bear of the Day
- InvestorPlace•21 days ago
7 Retail Stocks to Buy That Are Down in 2019
If you own either Nordstrom (NYSE:JWN) or Gap (NYSE:GPS) stock, you wouldn't have enjoyed reading CNN Business contributor Paul La Monica's June 28 article. La Monica informed his readers that these two retailers were the worst-performing S&P 500 stocks through the first six months of 2019. They were not the stocks to buy in the first half of the year. The article goes on to highlight other brick-and-mortar retailers that struggled in the first half of the year due to poor sales and profits. InvestorPlace - Stock Market News, Stock Advice & Trading TipsHow have the retail ETFs done so far in 2019 compared to the S&P 500?Not well. While the broad market S&P 500 ETFs were up almost 20% in the first half of the year, the top retail ETFs by assets under management (AUM) have generated between half and one-quarter the returns. However, just because a group of stocks has under-performed in one period doesn't mean they will under-perform in another. * 10 Stocks That Should Be Every Young Investor's First Choice For those who believe retail stocks will make a comeback in the second half, here are the seven stocks to buy that are down, but not out. Simon Property Group (SPG)Source: m01229 via Flickr (Modified)As retail stocks go, Simon Property Group (NYSE:SPG) is faring much better in 2019, although it's still down for the year. With retail stocks doing poorly, the focus falls on SPG and whether it can transform its malls into experiential palaces rather than moribund ghost towns where retailers go to die.However, as Greg Andrews of the Indianapolis Business Journal wrote about the mall owner recently, SPG "racked up annualized total return of 14% a year, far better than the 9.6% posted by the S&P 500" since going public in 1993. It's got staying power despite living through several market corrections as a publicly traded company. Plus, let's not forget that SPG stock has gone sideways the last five years while the index has gone on a tear. For me, the creme always rises to the top. CEO David Simon has been busy putting together a better mix of tenants that resonate with shoppers. Andrews highlighted the fact that Simon is making about 27% more from rent when it replaces an under-performing tenant with a newer, more appropriate one for today's changing retail climate. Despite the fact investors see brick-and-mortar retail doing poorly, Simon's evolution of its real estate ensures that the future is brighter than most people think.As Mark Twain said, "Buy land. They're not making it any more." SPG is a long-term buy. Stocks to Buy: Kroger (KR)Source: Shutterstock It's been a mixed bag in 2019 for grocery store chains. Some are up while others, such as Kroger (NYSE:KR), the nation's largest publicly traded grocery store, are down.It seems investors continue to be worried about Amazon (NASDAQ:AMZN), Walmart (NYSE:WMT), and even Target (NYSE:TGT). They shouldn't be. Despite Jeff Bezos claiming all kinds of changes would happen under Amazon's leadership, little has changed at Whole Foods in the two years since Amazon acquired the high-end grocery store. In fact, if investors take a closer look at what Amazon has done with Whole Foods, they will realize that it's not the great emancipator everyone says it is. "Food seems to be a category that keeps bedeviling Amazon. It said last week it will close its 4-year-old restaurant food delivery operation in the U.S., an admission that it had been outgunned by Grubhub, Doordash and Uber Eats," wrote Los Angeles Times contributors Sarah Halzack and Shira Ovide on June 16. "It earlier pared back the footprint of its 12-year-old Amazon Fresh grocery-delivery service, which struggled long before Whole Foods was in its tent."The fact is, Kroger's transformation continues to deliver long-term benefits for the grocery store chain. These benefits include cost savings, real-time data analysis, alternative revenue streams, and higher online sales. In just five years, for example, it will have grown digital sales from nothing in 2014 to $5 billion in the coming year. * 7 F-Rated Stocks to Sell for Summer In five more years, I'm confident that Kroger will be a different company from the one you see today. From where I sit, that's an excellent thing. Kohl's (KSS)Source: Hailey Pollard via FlickrThe second quarter was Kohl's (NYSE:KSS) worst quarter in the markets since 2001. You can now buy its stock for the same price you would have paid in November 2017. Yet, the retailer has more revenue and operating profits than it did two years ago. According to Miller Tabak equity strategist Matt Maley, the punishment dished out to KSS shareholders is overdone. "Its weekly RSI chart is quite oversold and that one could be due for a bounce, one that could last more than a couple of days," Maley said June 28 on CNBC. Kohl's has been hit by weak sales so far in 2019. This has forced CEO Michelle Gass to lower its earnings per share guidance for the fiscal year from $5.98 (midpoint of estimate) to $5.30, an 11% cut to the bottom line. However, now that KSS has rolled out Amazon's return program nationwide and launched in-store initiatives, the outlook for the second half of the year is much brighter. The company has also become more adept at managing its inventory levels at lower-volume stores, helping it keep margins higher at locations that aren't performing to its standard. It's a big reason Kohl's is shuttering Off/Aisle stores, the company's off-price experiment. As I stated earlier this year, I recommended investors continue to watch how Kohl's partnership with Amazon progresses. Now that it has gone nationwide, I see Kohl's in-store revenues increasing as Amazon users return goods. The partnership has proven to be a winner. Soon, Kohl's stockholders will reap the benefits. Urban Outfitters (URBN)Source: Shutterstock Business Insider often runs an article where a writer compares two different retail stores to gain a perspective as to why one stock is outperforming another. Recently, Shoshy Ciment shopped at both Urban Outfitters (NASDAQ:URBN) and American Eagle Outfitters (NYSE:AEO) stores in New York City.Ciment concluded that it was easy to see why American Eagle was dominating its segment of the retail sector. The Urban Outfitters store was in shambles while AEOs was a thing of beauty. While I get the Peter Lynch idea of seeing first hand how a business is operating, this exercise fails to consider several reasons why it might not be indicative of the entire picture. First, it's possible that the Urban Outfitters store was in the middle of changing its floor layout, which led to the less-than-desirable optics. Secondly, it's also possible that the URBN store was in-between managers. Retail has tremendous turnover, which often leads to terrible-looking stores while a team is understaffed. I could go on. The point is, you shouldn't surmise that one unsightly store is indicative of a poorly-performing stock or company. The opposite also holds. While it's true that AEO stock isn't doing nearly as poorly as URBN stock in 2019, they're both in the red year-to-date. Though AEO's Aerie line is killing it, shareholders should be concerned that it still can't deliver positive returns.That said, Urban Outfitters' three brands: Urban Outfitters, Anthropologie, and Free People, have seen a slowdown of sales in recent quarters. * The 7 Top Small-Cap Stocks Of 2019 However, from a value perspective, if you back out the company's $637 million in cash and marketable securities (it has no debt), you get an enterprise value of almost $1.7 billion. In the trailing 12 months ended April 30, Urban Outfitters had $290 million in free cash flow, for an FCF yield of about 17%, putting it easily within the value category. Genesco (GCO) These last three retail stocks to buy all come with significant warts, so do your due diligence before purchasing any of them.The recent hiring of Mel Tucker as Genesco (NYSE:GCO) CFO suggests to me that good things are just around the corner for the Nashville company. Tucker's got extensive experience in the retail industry, most recently serving as CFO at the iconic New York City department store, Century 21. Genesco is transforming into a footwear retailer. In December, it sold off its Lids stores for just $100 million. The sale allows CGO to focus on shoes and generate some cash it could reinvest in its Journeys business, which produced 7% same-store sales in the first quarter ended May 4. That's on top of 6% same-store sales growth in the same quarter a year earlier. In the first quarter, Journeys generated about 65% of Genesco's overall revenue and a big chunk of its total operating profits. Overall, Geneco's adjusted EPS was $0.33, almost 136% higher than a year earlier. As a result, it expects to generate EPS of $3.55 in fiscal 2019. At a current price of $41, GCO stock is trading at less than 12 times those earnings. With net cash of $83 million and free cash flow of almost $157 million, GCO stock is worth a closer look. Michaels (MIK)Source: Shutterstock The crafts retailer is your typical private equity horror story. Michaels (NASDAQ:MIK) was taken private in 2006 for $6 billion by Blackstone Group (NYSE:BX) and Bain Capital (NYSE:BCSF). After weathering the financial crisis, it was finally ready to go public in 2012. Unfortunately, the CEO had a stroke and the IPO was postponed until June 2014 when it raised $473 million selling shares to the public at $17 apiece.Trading at less than half its IPO price, MIK stock continues to struggle with internal and external issues, the most recent being investor concerns about the company's debt. In May, Michaels refinanced $500 million of its 5.875% debt at 8%, a sign that investors are worried about how the U.S. tariffs will impact a company reliant on Chinese imports. Before Michaels was taken private, it had no debt and $452 million in cash on the balance sheet. After the takeover, Michaels had $3.7 billion in debt and just $30 million in cash.The private equity owners used its sound financial standing to get almost $4 billion in loans to pay for its acquisition. At the end of the quarter Michaels had $2.7 billion in debt, $246 million in cash, and $5.2 million in annualized revenues.Why do I think you should buy it? * 7 Stocks to Buy for a Dovish Fed Someone will come along to take it private, slap a coat of paint on it, and take it public for a second time in less than a decade. Buckle (BKE)Buckle (NYSE:BKE) was a darn good stock and decent retailer to boot before it went into the toilet. Buckle now has a market cap of just $811 million, well below where it was trading at its height in 2015.However, despite having negative same-store sales for the past four years, BKE continues to make money, which is what ultimately drives stock prices higher. Back in 2015, Buckle was generating sales per square foot of $459. Today it's down to $334, or 37% lower. On the positive side, it has no debt, a working capital of $280 million, and has paid out $14.02 in regular and special dividends over the past five years. From a free cash flow perspective, Buckle's got $110 million for an FCF yield of 11.7%, also in value territory. If you're looking to capture a little income and aren't so concerned about capital appreciation, Buckle stock is a diamond in the rough. And who knows, it might figure out how to grow again.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks That Should Be Every Young Investor's First Choice * 5 IPO Stocks to Buy -- According to Wall Street Analysts * The Top 10 Best Sectors in the Market for 2019 The post 7 Retail Stocks to Buy That Are Down in 2019 appeared first on InvestorPlace.
- Morningstar•21 days ago
L Brands' Spin-Off Could Prove Lucrative
On the heels of Gap's February announcement that it would separate into two businesses, activist hedge fund and shareholder Barington Capital called for a similar move at L Brands LB . While investors sent Gap shares up more than 20% on the news that Old Navy would be a stand-alone business, we think such a breakup could be even more favorable for L Brands, given the lucrative 20%-plus operating margins of its Bath & Body Works segment and the upside that two distinctly focused businesses could create. Old Navy's same-store sales growth has already begun to slow and enterprise operating margin has contracted more than 500 basis points since 2013, a trend that might put such a transaction at risk.
- Zacks•23 days ago
What's Next for Nike (NKE) Stock in Fiscal 2020 Amid Digital Expansion?
Associate Stock Strategist Ben Rains breakdown Nike's (NKE) fourth-quarter fiscal 2019 financial results and takes a look at what's next for the sportswear powerhouse as it expands its digital business.
- Zacks•25 days ago
Why Is Gap (GPS) Down 12.8% Since Last Earnings Report?
Gap (GPS) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
- Bloomberg•27 days ago
H&M Gains as Retailer Shows Early Progress Toward Turnaround
(Bloomberg) -- Hennes & Mauritz AB surged after the struggling Swedish clothing retailer showed progress coping with a buildup of unsold garments, raising hopes that the worst may be over after a three-year slump in earnings.Inventory dropped slightly as a proportion of sales, easing to 18.2% at the end of May from a record 18.9% as of last August, H&M said Thursday. Chief Executive Officer Karl-Johan Persson said H&M still aims to boost operating profit this year. The stock rose as much as 11% Thursday in Stockholm.A pickup in revenue growth at the start of the third quarter, helped by a heat wave in Europe, is boosting optimism that the retailer may have returned to a level of sales growth that could gradually put the inventory issue behind it. H&M pledged to reduce discounts for a fourth consecutive quarter as it aims to reduce its 40-billion kronor ($4.5 billion) buildup of unsold garments.Analysts pointed to the June revenue growth of 12% as the trigger for the share gain. The stock can be volatile because short sellers have targeted H&M, betting against almost a fifth of the freely traded shares.Better CompositionThe retailer said that the composition of inventory has improved, implying it will become easier to sell the garments. The family-controlled company has a goal of eventually reducing stock-in-trade to 12% to 14% of sales, a level last seen three years ago. When asked in an interview if that could take four of five years, CEO Persson said it should be less than that, saying he’s “confident” H&M is heading in the right direction.“H&M is improving its offer, which should lead to a sales and earnings recovery in time, albeit with execution risk in an ongoing tough competitive environment,” wrote Richard Chamberlain, an analyst at RBC Europe.The company has recently been offering discounts of up to half off on summer clothes, offering $1.99 camisole tops, $25.99 faux leather biker jackets and skinny jeans for $8.99.H&M also cut this year’s store expansion plan by 26% while pledging more investment in e-commerce. H&M now expects 130 net store openings, further decelerating from a rate that exceeded 400 in recent years. Most of the new H&M shops will be outside of Europe and the U.S. as the retailer seeks faster-growing markets.H&M has been plowing investment into e-commerce, adding online sales in Mexico, Thailand, Indonesia and Egypt this year.The Swedish retailer is trying to catch up after Zara owner Inditex SA made it possible to order clothes from its chains from virtually anywhere in the world. H&M’s e-commerce reach extends to about 48 markets.Inditex has forecast sales growth of 4% to 6% this year on a like-for-like basis as the Spanish retailer outperforms rivals such as Gap Inc.H&M is also trying to catch up with Inditex’s lead in RFID, a technology that allows retailers to track the location of clothes in stores and warehouses to boost efficiency. The Swedish retailer said it now uses RFID in 15 markets. Zara uses it in all its stores.The Swedish retailer said it plans to launch H&M on Indian e-commerce platform Myntra and its & Other Stories chain on China’s Tmall by this autumn.H&M warned that the weak krona is still pushing up buying costs as the retailer buys the bulk of its garments in Asia, where prices are linked to dollars. The krona was on average about 10% weaker against the dollar in the second quarter.Pretax profit dropped 1.3% in the three months through May, missing analysts’ estimates and declining an eighth consecutive quarter.To contact the reporters on this story: Thomas Mulier in Geneva at tmulier@bloomberg.net;Hanna Hoikkala in Stockholm at hhoikkala@bloomberg.netTo contact the editors responsible for this story: Eric Pfanner at epfanner1@bloomberg.net, John J. Edwards IIIFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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