|April 11, 2014|
|13:36 EDT||TLYS, ANF, GPS, APP, AEO||Gap falls after experiencing sharp decline in March SSS |
Shares of apparel retailer Gap (GPS) are tumbling after the company reported a sharp decline in its March same-store sales yesterday. WHAT'S NEW: Gap reported that its same-store-sales in March declined 6% versus a 1% decrease last year. Broken down by division, same-store-sales for Gap Global were down 7% versus flat last year, Banana Republic Global declined 4% compared to a 1% gain last year and Old Navy Global fell 7% versus a 2% decline last year. Gap also reaffirmed its FY14 earnings per share view of $2.90-$2.95, which is slightly below analysts' consensus of $2.96. Last month, the retailer said that it expected March to be negatively impacted due to Easter occurring in April this year versus March last year. ANALYST REACTION: Today, Janney Capital downgraded Gap to Neutral from Buy and said the retailer's inventory continues to grow faster than sales and that promotions continue to infer a highly competitive backdrop. The firm lowered its fair value estimate for shares to $41 from $50. Janney Capital analysts Adrienne Tennant and Gabriella Carbone said that they expect the retail environment for Gap to still be challenging in the first half of FY14 and feel that SG&A control, margin-driven incentives, and ongoing buyback activity are imperative to help fuel earnings per share. Based on the weak patterns so far in the first quarter, the analysts said that they are lowering their estimates for the quarter to $2.89 from $2.95, consensus $2.96. They are also lowering their FY15 earnings per share view to $3.18 from $3.30. To reflect the spring break/Easter shift from March into April, the analysts are projecting a 1% decline for April comp. OTHERS TO WATCH: Gap's competitors include American Eagle Outfitters (AEO), American Apparel (APP), Abercrombie & Fitch (ANF) and Tilly’s (TLYS). PRICE ACTION: During afternoon trading, shares of Gap are down 79c, or 2.01%, to $38.50.
News For GPS;AEO;APP;ANF;TLYS From The Last 14 Days
|October 1, 2015|
|05:21 EDT||GPS||Stocks with implied volatility movement; GPS COP|
Stocks with implied volatility movement; Gap (GPS) 34, ConocoPhillips (COP) 37 according to iVolatility.
|September 30, 2015|
|16:34 EDT||GPS||On The Fly: Top stock stories for Wednesday|
Stocks on Wall Street were sharply higher in the last day of the third quarter, but not by nearly enough to turn any of the major averages positive on a quarterly basis. The Dow ended the quarter with a loss of about 7.6%, the Nasdaq slid 7.4% and the S&P has lost 7% in the last three months. Investors hope the fourth quarter will be more profitable and the non-farm payrolls report for September and the kickoff of earnings season, which are both on the near-term horizon, will certainly have a say in whether that is the case. ECONOMIC EVENTS: In the U.S., payroll processor ADP reported that 200,000 jobs were added this month, topping expectations for 190,000 job additions. The Chicago PMI business barometer index fell to 48.7 in September, missing expectations for a reading of 53.6. Additionally, the Senate passed a continuing resolution, officially funding the government through December 11. In China, important data, including manufacturing PMIs and Caixin readings, will be released overnight, but Chinese markets will be closed for "Golden Week" from October 1 to October 7. COMPANY NEWS: Shares of Gap (GPS) and Ralph Lauren (RL) moved in opposite directions after an executive for one left to take over for an icon at the other. Stefan Larsson will step down as global president of Old Navy in order to become the new Chief Executive Officer of Ralph Lauren, replacing the man who founded the company that bears his name. At least three research firms downgraded Gap shares to sell or equivalent ratings and the stock fell 5.69% to $28.50 in the wake of the executive shake-up, while Ralph Lauren shares advanced 13.56% to $118.16... Re/code's Kara Swisher and Kurt Wagner reported, citing sources, that Twitter (TWTR) founder and interim CEO Jack Dorsey is set to be named permanent Chief Executive, possibly as soon as Thursday. Re/code noted that Dorsey will remain as CEO of Square, the payments company he also founded, and that the company is likely to reconfigure its board of directors, beginning with the departure of former CEO Dick Costolo. MAJOR MOVERS: Among the notable gainers were Rentrak (RENT) and comScore (SCOR), which advanced a respective 24.61% and 11.29% after announcing a stock-for-stock merger agreement. Also higher was Western Digital (WDC), which gained $10.57, or 15.35%, to $79.44 after a subsidiary of China's Tsinghua Holdings agreed to take a 15% stake in the company. Additionally, Synaptics (SYNA) rose 27.31% to $82.46 after Bloomberg reported that the company rejected a $110 per share bid from a state-backed Chinese investment group. Among the noteworthy losers was Barracuda Networks (CUDA), which crashed $8.01, or 34.01%, to $15.54 after its quarterly results and future guidance both fell short of analyst expectations. Also lower was Mellanox (MLNX), which fell $2.00, or 5.03%, to $37.79 after agreeing to acquire EZchip (EZCH) but failing to reiterate its guidance on a subsequent conference call. Separately, Universal Truckload (UACL) plunged 18.91% to $15.57 after guiding its Q3 results significantly below consensus estimates, after which the stock saw downgrades at research firms BB&T and Citi. INDEXES: The Dow advanced 235.57, or 1.47%, to 16,284.70, the Nasdaq added 102.84, or 2.28%, to 4,620.17, and the S&P 500 rose 35.94, or 1.91%, to 1,920.03.
|12:10 EDT||GPS||On The Fly: Top stock stories at midday|
Stocks on Wall Street were higher at midday as the unquestionably hard quarter looks like it will end on an up note. Relief, as well as end of the quarter window dressing, may be the main drivers of this morning's rebound as investors are certainly ready to turn the page on the third quarter with the monthly non-farm payrolls report and the start of earnings season on the horizon. ECONOMIC EVENTS: In the U.S., payroll processor ADP reported that 200,000 jobs were added this month, topping expectations for 190,000 job additions. The Chicago PMI business barometer index fell to 48.7 in September, missing expectations for a reading of 53.6. Additionally, the Senate passed a continuing resolution, officially funding the government through December 11. COMPANY NEWS: Shares of two clothing companies moved in opposite directions after an executive for one left to take over for an icon at the other. Last night, Gap (GPS) announced that Stefan Larsson will step down as global president of Old Navy effective October 2. Larsson is leaving Gap to become the new Chief Executive Officer of Ralph Lauren (RL), replacing the man who founded the company that bears his name. At least three research firms downgraded Gap shares to sell or equivalent ratings and the stock fell 7% in the wake of the executive shake-up, while Ralph Lauren shares were upgraded to Buy at UBS and the stock advanced 12% near noon. MAJOR MOVERS: Among the notable gainers were Rentrak (RENT) and comScore (SCOR), which gained 20% and 9%, respectively, after the companies agreed to a stock-for-stock merger. Also higher were shares of Western Digital (WDC), which rallied 14.5% after Unisplendour, a unit of China's Tsinghua Holdings, struck a deal to buy a 15% stake in the U.S. data storage company. Among the noteworthy losers was Barracuda Networks (CUDA), whose shares plunged 35% after the IT security and storage solutions company reported lower than expected revenue and provided weaker than expected guidance. Also lower were shares of Mellanox (MLNX), which were down 9% after the company agreed to acquire EZchip (EZCH) in a transaction implying a value of approximately $811M, or roughly $620M net of cash. Potentially overshadowing the deal was the fact that the company failed to reiterate its guidance despite being asked repeatedly by analysts on today's acquisition conference call, Summit Research analyst Srini Nandury told investors in a research note. EZchip, which will be bought for a cash purchase price of $25.50 per share, rose 14% following the deal announcement. INDEXES: Near midday, the Dow was up 128.64, or 0.8%, to 16,177.77, the Nasdaq was up 56.46, or 1.25%, to 4,573.78, and the S&P 500 was up 18.68, or 0.99%, to 1,902.77.
|10:19 EDT||GPS||Gap volatility elevated on Ralph Lauren appointing Old Navy president as CEO|
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|10:03 EDT||GPS||Gap drops, levels to watch|
Price was last at $27.79, just off the session low at $27.72 which is a new 52-week low. At current price next major support would be at $26.50. Resistance is at $28.65.
|10:01 EDT||GPS||On The Fly: Analyst Downgrade Summary|
Today's noteworthy downgrades include: Abengoa Yield (ABY) downgraded to Equal Weight from Overweight at Morgan Stanley... American Airlines (AAL) downgraded to Neutral from Buy at Goldman... Baidu (BIDU) downgraded to Hold from Buy at Summit Research... Banco Santander (SAN) downgraded to Neutral from Overweight at JPMorgan... Barracuda (CUDA) downgraded to Equal Weight from Overweight at Stephens... Basic Energy (BAS) downgraded to In-Line from Outperform at Imperial Capital... C.H. Robinson (CHRW) downgraded to Sell from Neutral at Goldman... Cheetah Mobile (CMCM) downgraded to Neutral from Outperform at Credit Suisse... FleetCor (FLT) downgraded to Hold from Buy at Evercore ISI... Gap (GPS) downgraded to Sell from Neutral at UBS... Genuine Parts (GPC) downgraded to Sell from Neutral at Goldman... Grupo Televisa (TV) downgraded to Hold from Buy at HSBC... ITC Holdings (ITC) downgraded to Sell from Neutral at UBS... Lantheus (LNTH) downgraded to Market Perform from Outperform at Wells Fargo... Rentrak (RENT) downgraded to Buy from Strong Buy at Needham... SQM (SQM) downgraded to Neutral from Overweight at JPMorgan... Sequenom (SQNM) downgraded to Hold from Buy at Jefferies... Team (TISI) downgraded to Equal Weight from Overweight at Stephens... Universal Truckload (UACL) downgraded to Hold from Buy at BB&T.
|09:33 EDT||GPS||Gap hit with sells after losing Old Navy head to Ralph Lauren|
Shares of two clothing companies are moving in opposite directions after an executive for one left to takeover for an icon at the other. NEWS: Last night, Gap (GPS) announced that Stefan Larsson will step down as global president of Old Navy effective October 2. Larsson is leaving Gap to become the new Chief Executive Officer of Ralph Lauren (RL), replacing the man who founded the company that bears his name. The company said founder Ralph Lauren will continue to "actively drive the company's vision and strategy" as executive chairman and Chief Creative Officer. SELL GAP: Following the executive change, at least three research firms downgraded Gap shares to sell or equivalent ratings. Among them is UBS analyst Michael Binetti, who said the Old Navy presidents unexpected departure reduces his conviction that Old Navy can maintain its momentum. Further, visibility into the turnarounds of the Gap and Banana Republic brands is now "significantly reduced" since Larsson's leadership and processes were at the centerpiece of those efforts, said Binetti, who cut his price target for Gap shares to $25 from $40. Of a similar mindset is Piper Jaffray analyst Neely Tamminga, who downgraded Gap to Underweight, citing the departure of Larsson and as well as the risk to earnings from higher promotional levels relative to last year. Tamminga lowered her price target for Gap shares to $28 from $34. Mizuho analyst Betty Chen also downgraded Gap to Underperform this morning and lowered her price target on shares to $26. Chen believes the departure of Larsson is a "bad omen" for Old Navy performance going forward and a major brain trust loss for the company as both Gap and Banana Republic struggle to refine design and supply chain processes. BUY RALPH LAUREN: In addition to cutting his rating on Gap, UBS' Binetti upgraded Ralph Lauren to Buy this morning, saying new CEO Larsson brings a track record for optimizing operations quickly. Binetti also believes the stock is "inexpensive" following the 44% year-to-date pullback. Binetti cut his price target for Ralph Lauren shares, however, to $128 from $133. PRICE ACTION: In early trading, Gap shares fell more than 7.5% to $27.92, while Ralph Lauren rose 10% to just above $114.45 per share.
|09:28 EDT||GPS||Ralph Lauren volatility flat into appointing Gap's global president as CEO|
Ralph Lauren (RL) October call option implied volatility is at 33, November is at 34; compared to its 52-week range of 17 to 43, suggesting non-directional price movement into appointing Gap's (GPS) global president of Old Navy as CEO.
|09:13 EDT||GPS||On The Fly: Pre-market Movers |
HIGHER: Mediwound (MDWD), up 25.5% after being awarded a BARDA contract valued up to $112M... Novavax (NVAX), up 8.4% after RSV F vaccine meets safety endpoints in its Phase 1 clinical trial... Western Digital (WDC), up 11.7% after receiving a $3.78B equity investment by Unisplendour Corporation... Esperion Therapeutics (ESPR), up 9.9% after being upgraded to Neutral from Sell at Chardan and after JPMorgan said they still see longer-term upside in the shares... Pericom Semiconductor (PSEM), up 6.5% after Montage Technology proposes to acquire the company for $18.50 per share... Fiat Chrysler (FCAU), up 5.2% after CNBC reported that the company could launch Ferrari's IPO as soon as Friday. NOTABLE: Ralph Lauren (RL), up 6.4% after appointing Gap's (GPS) global president of Old Navy, Stefan Larsson as CEO... Gap is down 7.4%. DOWN AFTER EARNINGS: Barracuda Networks (CUDA), down 28.5%... Costco (COST), down a half a percent.
|06:57 EDT||GPS||Larsson leaving Gap doesn't reflect near-term issues at Old Navy, says Baird|
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|06:51 EDT||GPS||Gap downgraded to Underperform from Neutral at Mizuho|
Mizuho analyst Betty Chen downgraded Gap to Underperform and lowered her price target on shares to $26. Chen believes the departure of President Larsson is a "bad omen" for Old Navy performance going forward and a major brain trust loss for the company as both Gap and Banana Republic struggle to refine design and supply chain processes. The analyst lowered Gap estimates below consensus for both FY15 and FY16 given reduced expectations for Old Navy's future performance. Piper Jaffray and UBS also downgraded shares this morning.
|06:21 EDT||GPS||Gap downgraded to Underweight from Neutral at Piper Jaffray|
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|05:55 EDT||GPS||Ralph Lauren upgraded to Buy from Neutral at UBS|
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|05:46 EDT||GPS||Gap downgraded to Sell from Neutral at UBS|
UBS analyst Michael Binetti downgraded Gap (GPS) to Sell saying Old Navy President Stefan Larsson's unexpected departure to Ralph Lauren (RL) reduces his conviction that Old Navy can maintain its momentum. Further, visibility into the turnarounds of the Gap and Banana Republic brands is now "significantly reduced" since Larsson's leadership and processes were at the centerpiece of those efforts, Binetti tells investors in a research note. He cut his price target for Gap shares to $25 from $40. The retailer closed yesterday up 9c to $30.22 and is traded down last night $1.24 to $28.98 following the news.
|September 29, 2015|
|16:33 EDT||GPS||Ralph Lauren appoints Stefan Larsson as CEO|
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|16:22 EDT||GPS||Ralph Lauren CEO to step down, Gap's Larsson to replace, Bloomberg says |
|16:19 EDT||GPS||Gap announces Stefan Larsson will step down as global president of Old Navy |
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|September 25, 2015|
|17:37 EDT||APP||American Apparel does not meet NYSE listing standards |
On September 23, American Apparel received a notice from NYSE MKT stating that the Company does not meet continued listing standards of the Exchange as set forth in Part 10 of the NYSE MKT Company Guide. Specifically, the Notice states that, based on the Exchange's recent review, the Company was not in compliance with Section 1003(a)(iv) of the Company Guide because "it has sustained losses which are so substantial in relation to its overall operations or its existing financial resources, or its financial condition has become so impaired that it appears questionable, in the opinion of the Exchange, as to whether the Company will be able to continue operations and/or meet its obligations as they mature." As a result, the Notice states that the Company has become subject to the procedures and requirements of Section 1009 of the Company Guide. The Notice states that the Company must submit a plan of compliance to the Exchange by October 9 addressing how it intends to regain compliance with the continued listing standards of Section 1003(a)(iv) of the Company Guide by November 15. If the plan is accepted by the Exchange, the Notice states that the Company will be subject to periodic reviews including monitoring for compliance with the plan.
|September 24, 2015|
|15:01 EDT||ANF||Abercrombie & Fitch downgraded to Hold from Buy at Standpoint Research|
|12:12 EDT||GPS||Gap management to meet with Jefferies|
Meeting to be held in New York on October 1 hosted by Jefferies.