ARO

A Tale of Two Teen Retailers: Abercrombie & Fitch, Aeropostale

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On Thursday, Abercrombie & Fitch (ANF) and Aeropostale (ARO) reported third-quarter sales. The resulting stock price performace from the two was completely opposite: Abercrombie fell sharply, while Aeropostale shot up significantly. We think Abercrombie now represents a bargain under $59 per share, but we are waiting for the technicals to firm before diving into the shares in the portfolio of our Best Ideas Newsletter. We think Aeropostale is fairly valued, even after the big move. Let’s dig into the reports of both of the companies. Abercrombie was weighed down by poor results in Europe, Japan and Canada, with the company noting negative comps for its flagship stores in the regions. Though by itself, such news wouldn’t cause the massive 20%+ price … Read more

Valuentum’s Comprehensive Report on Retail Brands

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Key Takeaways ·        Valuentum sees four major brand segments o   Ultra-Luxury §  Richemont, Burberry, LVMH, Gucci (Kering), Chanel, Hermes §  Rich heritage brands, economically resilient consumer o   Luxury §  Marc Jacobs, Tory Burch, Ralph Lauren, Tiffany §  Valuable brands, semi-strong barriers to entry o   Aspirational §  Michael Kors, Marc by Marc Jacobs, Coach, North Face §  Popular with younger consumers, strong brand loyalty o   Established §  Nike, Adidas, Under Armour, lululemon, PVH, Express §  Price competitive, exposed to fashion ·        Our favorite dividend idea: Coach ·        Fallen Stars: Guess, Bebe ·        Valuentum’s Take: Brand value is only part of the investment equation Branding has been a powerful force in both marketing and investing for the past century. Companies work hard … Read more