Some things I was looking at for Ascena going forward.
Already showed Ann Taylor/Loft?Justice for first 9 months this year and what they will have as a company going forward with Dress Barn closing and selling Lane Bryant and Catherine's to someone who can take the time to streamline it who will be able to just focus on them.
Taylor/Loft YoY they are 87 million dollars ahead in revenues with 44.8 million in profits at 9 months in for the Fashion Line with 36 stores less than last year. Sold Maurice's will start getting 49% of profits this Q and going forward and share in the sale after it is done with streamlining and profit build. Justice turned around Revenues virtually flat down $2 million in revenues with 63 less stores and growing stronger by the month.
Look at what they are losing with closing of Dress barn and sale of plus fashion going forward.
Three Months Ended MAY 4th 2019
Value Fashion 177.3 mil
Plus Fashion 311.5 mil
Operating loss Three Months Ended May 4th 2019
Value Fashion (43.1) mil
Plus Fashion (27.7) mil
Q before (32) and (19) mil
Gonna be a whole new ball game
Now getting rid of Dress barn everyone also does not take into account Dress Barn inventory they will get decent chunk from that after expenses etc and thats a large amount of inventory.
8. Inventories
Inventories substantially consist of finished goods merchandise. Inventory by segment is set forth below
Value Fashion $94.7 million
Value Fashion segment – consists of the specialty retail, outlet and direct channel operations of the dressbarn brand. (From last 10Q as Maurice's was left out due to sale)
Now I know will be costs etc but closing down during holiday shopping season from Black Friday to after Xmas day sales for their total its gone time, that has to be the best time to close 500 stores will get far more than just closing a store out of the blue and having the liquidation now sale going out of business. And closing sales on the internet Ecommerce site? They will get far more than people think for that 95 million in inventory their cost.
When people look for the sales, captive audience. That is a lot of inventory and that is their cost, that they will sell at a profit may not be great margins but still, people not seeing the entire picture IMHO. If they got deal with landlords with concessions they can damn near IMHO get buy losing hardly anything comparatively. No one seeing bright side anywhere just worst case scenario which is out of question after hearing CC's from landlords and statements from Ascena. I don't get the gloom of naysayers I really don't.
I think people see headlines and see what they want to see, and ignore what they don't. Glass half empty types. With all that money and concessions they could come out making money albeit small no doubt. But certainly not $100-200 million dollars or even 25 million.
Yeah I just don't get it, they will have cut everything loose that cost them adding cash a lot and keeping Maurice's 49% going forward with $3.5 bil + in profitable sales and its a quarter?
Don't even get me started about if they got those 17 mil shares to shrink OS in the Mane Sale deal. Those three things happen better be laced up kids.
Peace out.
AI
