Last week, women’s clothing retailer The Limited announced it was closing down all of its stores. It’s yet another casualty in the war on shopping malls and highlights the further transition of clothing retail to “fast fashion” and online formatting. It has been an ominous year for brick-and-mortar stores, but another one down could be good news for the survivors.
Image source: The Limited.
Traditional retail casualties
L Brands (NYSE:LB), owner of brands likeVictoria’s Secret and Bath & Body Works, spun off its last stake in The Limited to private equity company Sun Capital in 2010. Once a thriving fixture of the shopping mall experience, the beleaguered company is throwing in the towel and is now in process of closing down its remaining 250 locations.
Sun Capital said it will be taking a loss on the remaining equity has in the business, but said in a statement to shareholders it still made money on the purchase through dividend distributions taken since the first stake was taken in 2007.
canadian stock picks: Dave & Buster's Entertainment, Inc.(PLAY)
Advisors’ Opinion:
- [By Peter Graham]
Small cap restaurant and entertainment stockDave & Busters Entertainment Inc (NASDAQ: PLAY) reported Q2 2017 earnings after the Tuesday close with shares falling in after hours/premarket trading. Total revenues increased 14.9% to $280.8 million as comparable store sales increased 1.1%. Across all stores, Food and Beverage revenues increased 10.2% to $118.7 million from $107.7 million and Amusement and Other revenues increased 18.6% to $162.1 million from $136.7 million. Food and Beverage represented 42.3% of total revenues while Amusements and Other represented 57.7% of total revenues in the Q2 2017 versus44.1% and 55.9% of total revenues, respectively, for the same period last year. Net income was $30.4 million versus net income of $21.5 million. The CEO commented:
- [By WWW.THESTREET.COM]
All is not lost for retail, however. Cramer continued to recommend the closeout and discount chains like TJX Stores (TJX) , Ollie’s Bargain Outlet (OLLI) and Burlington Stores (BURL) . He was also bullish on those who cater to the millennials, like Six Flags (SIX) , Dave & Busters (PLAY) and Foot Locker (FL) , where trying on shoes never seems to go out of style.
- [By Nicholas Rossolillo]
Dave and Buster’s Entertainment (NASDAQ:PLAY) is unique in that it’s part restaurant, part gaming establishment. On the food side, the chain touts American gastro-pub style cuisine and an extensive bar, but the experience is what really sets Dave and Buster’s apart. Who says arcades are only for kids?
- [By Rich Duprey]
Yet as much as staying home and watching movies or television might be impacting Buffalo Wild Wings’ bottom line, it’s clear other factors are also at play, because where the beer-and-wings joint continues to report falling sales, rival Dave & Buster’s Entertainment(NASDAQ:PLAY) is see strong growth.
- [By Peter Graham]
Small cap restaurant and entertainment stockDave & Busters Entertainment Inc (NASDAQ: PLAY) reported Q3 2017 earnings after the Tuesday close that exceeded Wall Street expectations plus the Company announced a new smaller store format. Total revenues increased 9.3% to $250.0 million. Across all stores, Food and Beverage revenues increased 6.3% to $107.7 million and Amusement and Other revenues increased 11.8% to $142.3 million asFood and Beverage represented 43.1% of total revenues while Amusements and Other represented 56.9% of total revenues. In last years third quarter, Food & Beverage represented 44.3% of total revenues while Amusements and Other represented 55.7% of total revenues.
canadian stock picks: ADDvantage Technologies Group, Inc.(AEY)
Advisors’ Opinion:
- [By Jim Robertson]
Today, our Under the Radar Moversnewsletter suggestedshorting small cap cable television and telecommunications equipment stock ADDvantage Technologies Group, Inc (NASDAQ: AEY):
canadian stock picks: Emerson Radio Corporation(MSN)
Advisors’ Opinion:
- [By WWW.MONEYSHOW.COM]
Emerson Radio (MSN) is a marketer of consumer electronic products and various housewares.
The company has about $1.91 in cash per share, yet sells for less than half that amount. The stock trades at 7.5 times forward earnings. The company is debt free.
canadian stock picks: Zillow Group, Inc.(ZG)
Advisors’ Opinion:
- [By Steve Symington]
The stock market was mostly flat today ahead of a key House vote on the passage of the Republicans’ healthcare bill, which was delayed until Friday after GOP lawmakers failed to gather the necessary support. TheDow Jones Industrial Averagelost just 5 points, or 0.02%, while other broader market indexes saw similar small declines. But several individual stocks saw much more severe drops, including Zillow Group (NASDAQ:Z) (NASDAQ:ZG), Proofpoint (NASDAQ:PFPT), and Accenture (NYSE:ACN). Read on to see what drove these unusual moves.
- [By Steve Symington]
Shares of Zillow Group Inc. (NASDAQ:Z)(NASDAQ:ZG)climbed 13.8% in the month of April,according to data provided byS&P Global Market Intelligence, ahead of the online real estate specialist’s impending first-quarter 2017 report.
