Big thing with this as I said is guidance as I mentioned yesterday and what I think so many forgot about. Next Q will be off the chain even only having 1 month of no DB's what so ever on the books that is a whole lot of rents that will not have to be paid and labor costs where the stores were losing so that will save 10's of millions last year DB cost them 100+ million in losses, those get wiped away going forward.
That is a -100 million that changes earnings having a 100+ million swing in the opposite direction. They like FRAN had heavy write down losses they took last Q so that they would be in the 2019 calendar year, like the severance costs for DB's that......
From 10K Severance and benefit costs:
Value Fashion $26.9 million
Also from the CC do not forget the $150 million in savings set to take hold in 2020...……
""""Cash remains our number one priority. We are in the process of rightsizing our cost structure to align with the scale of our go-forward business. We are well on our way to achieving the $150 million of annualized savings that we previously communicated, the bulk of which we expect to realize in fiscal 2020."""
$150 million in savings .75 a share. The analyst asked a question of him about it and if/how much of that savings was in Q4 2019 he said a almost none as it all comes in 2020, times are a changing.
He mentions cash there as well, well we all know from last Q with DB comparable sales being up 10% and cash going to balance sheet we know there will be more of the same and in the holiday Q with 500+ closing forget about it cash cash cash.
This from the CFO in the CC...…..
Excluding Dressbarn, adjusted operating income was $13 million.
Now this Q will have closed another 100 or so DB's last Q 45 but this next one 520 +/-
GUIDANCE its all about what is coming and anyone thinking this thing will be crushed down to some ridiculous number with the holiday Q results ahead where they will earn per share than the stock is selling for now, guidance RS or no RS its all the same if the shares get 10X so do the earnings the story remains the same.
I want to know how much the got for the intellectual property for Dress Barn as guesses my own included have been all over the place from 20-200 million so somewhere between .10 and $1 per share many forgot about that huh? And like I said it does RS for 1 for 10 or whatever that goes up 10X as well to $1-$10 per share
I also want to know what happened to the 17 mil shares I think they were sold to another tute JMHO as part of another deal they had worked out between them some give and take. I thought, which still could be true but doubtful that it was a deal with company you buy these shares for this discount and we take it off the Justice or Lane Bryant deal, whatever it is it doesn't really matter as the page has been turned and ASNA is right now in the middle of the Q that changes it all 100%.
The CEO mentioned last Q he was thankful and knew it has been tough on shareholders but short term pain would make for long term pleasure/results. Just like them taking the severance payment hit and other write downs last Q so would be on 2019 calendar year.
Said last year with another one things getting ready to change in a big way 2020 FRAN 2.0 mark it. Sucks going through the cutting/rebuilding but when it is done damn what a party.
Peace out.
