@TraceyRyniec @dt2011 @TheRock44 @CashBGone Yes, $ASNA is EXACTLY like JCP, which had $4 billion debt, is/was the poster child for the melting ice cube department store sector, and was positioned somewhere between Wal-Mart/Target and Kohls (i.e. no real market position). Another fact is when evaluating INDIVIDUAL companies (retailers) in an industry (retail) is that all companies are the same. LOL. ASNA has net debt of about $1 billion, a balloon payment not due for two years, ample assets to monetize over the same time period, the likely opportunity to REFINANCE its debt, and regional economies are beginning to re-open in the United States. And, yes, we should all conveniently forget that with JCP and Neiman Marcus filing BK that ASNA and many other retailers will be able to re-negotiate or terminate leases given an anchor store is gone from those malls.
@DVP19 No. I urge you to read the Intelligent Investor. Know the margin of safety. Ascena was in a turnaround well before COVID. The recession is going to crush ALL retailers but the weakest ones might not make it. Investors: own strength.
@DVP19 But this is normal. ALL apparel retailers will struggle. It's a recession with 30 million unemployed and everyone else terrified. Who do you want to own? A retailer struggling with a turnaround or one with the strongest brands and cash to pay a dividend? Buy strength. Buy the best. Forget value traps.
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