Abercrombie & Fitch closes in Coralville mall; Coral Ridge adjusts to chain closings
Zach Berg, Iowa City Press-Citizen Published 3:04 p.m. CT Feb. 14, 2019 | Updated 9:16 a.m. CT Feb. 15, 2019
Abercrombie & Fitch has closed inside Coralville's Coral Ridge Mall, marking the latest national or golbal chain to depart the popular Johnson County mall.
A file photo of a Abercrombie and Fitch mall location. Getty Images. (Photo11: jetcityimage / Getty Images)
Shoppers walking through the western wing of the Coral Ridge Mall can see the closed spot that once held Abercrombie & Fitch. The signage has been removed from the casual wear clothier that has been sell clothing since 1892, grew to a national chain in 1950s and 1960s and became a publicly-traded company on the New York Stock Exchange in 1996 and now has stores across the globe.
A spokesperson for Abercrombie & Fitch said in an email Thursday that the Coral Ridge store was closed on Jan. 19. She noted that online shopping through the company has increased. During the third quarter of the 2018 fiscal year. The company's digital sales were up 16 percent from the previous year.
Both of the company's Iowa stores are now closed. The lone other Iowa location, at the Jordan Creek Mall in West Des Moines, closed on Jan. 24. Abercrombie & Fitch expects to close up to 40 stores in fiscal year 2018, which ended Feb. 2. The number of closings is one-third fewer than the company originally announced, which was 60 closings.
Monica Nadeau, senior general manager at the Coral Ridge Mall, said in an email that she would not comment about the closing because "we do not comment on behalf of our retailers." She added that Five Below, the national discount store that sells everything from books, candy, toys and more, was opening at another spot in the mall in March.
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The closed space where Abercrombie & Fitch once stood in Coralville's Coral Ridge Mall is shown on Feb. 5, 2019. (Photo11: Zach Berg/ Press-Citizen)
"While other discussions are in progress, we are not yet ready to talk publicly about these plans," Nadeau said. "Coral Ridge remains a staple in the community and we are always pursuing ways to evolve the customer experience and are in constant communication with different retailers."
The clothier has been closing locations in malls across the country the past few years. According to CNBC, Abercrombie & Fitch announced 40 store closures in 2017 and 50 in 2016.
The closing of Abercrombie & Fitch is the latest chapter for a mall that draws large crowds regularly, but is dealing with a shuffling deck of national chains.
Younkers closed its Coral Ridge Mall location, along with all locations through Iowa, last year as their parent company Bon-Ton went bankrupt. The space is still empty, but has been sold in an auction along with several other Bon-Ton store locations by A&G Realty Partners last month. Bill Parness, media contact for the A&G, said that the purchaser would be announced after the purchase has been finalized.
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Five Below is seen on Monday, Jan. 28, 2019, at the Coral Ridge Mall in Coralville, Iowa. The discount store's website says, "everything, every day, is just $5 and below." (Photo11: Joseph Cress/Iowa City Press-Citizen)
After years of well-documented finical trouble on a nation-wide corporate level, Sears closed its Coral Ridge location in 2013. After the space was demolished, a new 98,000 square-foot, single story structure was built in its place and currently houses stores like PetSmart, Marshalls and HomeGoods. LOFT, a women's clothing store that sat just one storefront away from Abercrombie, has also closed in the mall recently.
The closing of Abercrombie & Fitch comes after a nightmarish December for national retailers. Bloomberg reported that the value of sales fell 1.2 percent in December, the biggest drop in nine years. Excluding automobiles and gasoline, retail sales were down 1.4 percent, the biggest drop since 2009. Non-store retailers, which includes online stores, fell 3.9 percent, the biggest fall since 2008.
Still, Coral Ridge Mall remains a major draw for Johnson County shoppers. Anchor tenants like the Coral Ridge Theatre, Panera, Barnes & Noble, Dillards, Scheels, the attached Target, the Iowa Children's Museum and others regularly attract large crowds.
Reach Zach Berg at 319-887-5412, zberg@press-citizen.com or follow him on Twitter at @ZacharyBerg.
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Casey's, Polaris, Telenav, Applied Materials, Macy's, Zumiez and Abercrombie & Fitch highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – February 20, 2019 – Zacks Equity Research Telenav TNAV as the Bull of the Day, Applied Materials AMAT as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Macy's, Inc. M, Zumiez ZUMZ and Abercrombie & Fitch ANF.
Here is a synopsis of all five stocks:
Bull of the Day:
Telenavcaught my eye as it is just the type of stock that I look for. My search all starts with the Zacks Rank, and when I see a stock with the best Zacks Rank I am going to take a deeper look. TNAV has a Zacks Rank #1 (Strong Buy) due to a good earnings history and solid earnings estimate revisions.
Earnings History
Lately, I when I look at an earnings history I key on just the last four quarters. A lot has changed just in this calendar year, so I am putting less and less weight on earnings that are more than a year back.
For TNAV the earnings history over the last four quarters is really looking good. They are four for four in beating the Zacks Consensus Estimate, which is also a good thing. Drilling deeper I see something that I really like.
Let’s start with the report that came four quarters ago, a 1 cent beat for a 1.6% positive earnings surprise. Then a 4 cent beat for a 6.8% positive earnings surprise. That was followed by an 8 cent beat for a 36% positive earnings surprise and finally the most recent quarter saw a 6 cent beat for a 50% positive earnings surprise.
You can see that the size of positive earnings surprise just keeps getting bigger. At the same time, the loss per share has moved from $0.60 to $0.06. That tells me that profitability is right around the corner.
Estimate Revisions
When I see a Zacks Rank #1 (Strong Buy) I am confident that there will be some strong positive moves in the earnings estimates. The Zacks Rank is heavily influenced by recent estimate changes, so let’s look at the number for TNAV.
I see the losses shrinking for this quarter as well as next, each by a penny or two. The real move is the fiscal 2019 number that has moved from a loss of 48 cents to a loss of 43 cents. That is the good news.
There is the fiscal 2020 number that is a bit odd to me. I see that loss increasing… and that isn’t the type of thing we like to see. This could be a case of limited visibility on the part of analysts as we are a good year and a half out from that time frame.
Valuation
We tend to lean on the PE (trailing and forward) but in this instance we will not have that crutch. Instead, we look at price to book to see a great multiple of 2.4x and then another reasonable price to sales multiple of 1.7x. Both of those metrics are good… but then I look at margins.
While there has been some really big, positive move in margins, I see a -48% operating margin and -50% net margin. So it is not a sure thing here at all. Yes, those margin levels were in the -80 range not too long ago, so there is improvement, but still, those large numbers are enough to give me pause.
Bear of the Day:
Applied Materialsrecently reported earnings that beat the Zacks Consensus Estimate. The problem is they guided next quarter below the consensus and when the consensus falls, so does the Zacks Rank. Let's take a look at the details in this Bear of the Day article.
Description
Applied Materials offers a diverse array of flexible service solutions to increase equipment uptime and factory efficiency, enabling fabs to focus on chip production, while lowering cost per wafer. The Company's display service portfolio has been developed to address the customers' specific needs and offers a variety of services that provide support for every maintenance activity on an Applied Materials display tool. Applied Materials is committed to the success of the customers throughout the product and factory life cycle and their crystalline silicon solar (c-Si) services enable the customers to focus on increasing cell efficiency and meeting factory goals.
Recent Report
I see the company beating the Zacks Consensus Estimate of $0.79 by $0.02 for a 2.5% positive earnings surprise. That is good to see, but Wall Street cares more about what you will do than what you have done.
Story continues
The company guided next quarter EPS of $0.62 to $0.70 and that was well below the $0.78 estimate at the time. In fact, the number for this quarter was $0.82 60 days ago and came in by a penny as of 30 days ago. A week ahead of earnings the number was $0.78 so you can see estimates were softening ahead of the report.
The next quarter has also seen a shift lower in estimates with the Zacks Consensus Estimate dropping from $0.90 to $0.78 over the last 90 days.
Implied Earnings Growth
The full year earnings estimate for fiscal 2019 has dropped from $3.64 to $3.23, and that will send you to the low end of the Zacks Rank.
There is hope though, as fiscal 2020 is looking for $3.94 in EPS so there is some implied earnings growth ahead for AMAT.
Factors Likely to Decide Macy’s (M) Earnings Fate
Macy's, Inc.is scheduled to report fourth-quarter fiscal 2018 results on Feb 26, before the opening bell. In the last reported quarter, this department store retailer delivered a positive earnings surprise of 92.9%. The company’s bottom-line has also outperformed the Zacks Consensus Estimate by average of 37.9% in the trailing four quarters.
How Are Estimates Faring?
The Zacks Consensus Estimate for the to-be-reported quarter is pegged at $2.65, which reflects a sharp decline from $2.82 recorded in the year-ago quarter. We note that the Zacks Consensus Estimate has been stable in 30 days. The Zacks Consensus Estimate for revenues currently stands at $8,461 million, exhibiting year-over-year decline of roughly 2.4%. In the last reported quarter, the company’s net sales grew 2.3%.
For fiscal 2018, the consensus estimates for top and bottom lines are pegged at $24.9 billion and $4.01, respectively.
Factors at Play
Dismal Holiday Sales Numbers to Impact Q4 Performance
In spite of taking a slew of measures such as Backstage, Vendor Direct, Store Pickup, Loyalty Program and Growth50 stores, Macy’s posted weaker-than-expected sales figures for the holiday season, which coincides with the fourth quarter. Comparable sales on an owned plus licensed basis increased 1.1% during November and December period combined, while on an owned basis, comparable sales inched up 0.7%. However, digital business remained robust and recorded double-digit growth.
Management informed that Macy’s kick-started the season on a solid note primarily during Black Friday and the following Cyber Week but lost momentum in the mid-December period only to regain some pace during Christmas.
Trimmed Forecast Raises Concern
Following an unimpressive holiday sales report, Macy’s lowered fiscal 2018 view. The company now expects comparable sales on an owned plus licensed basis to increase about 2%, down from the prior expectation of 2.3-2.5% growth. Net sales are anticipated to remain flat year over year compared with earlier expectation of a 0.3-0.7% increase. The company now envisions earnings in the band of $3.95-$4.00 per share, down from its prior view of $4.10-$4.30.
Other Factors to Note
Certainly, Macy's has been focusing on price optimization, inventory management, merchandise planning and private label offering, and developing omni-channel capabilities and online order fulfillment centers. The company added a new feature to its mobile app called Mobile Checkout and also bought minority stake in b8ta, a technology retailer.
The aforementioned endeavors are viewed as steps to safeguard against industry challenges and stiff competition from online retailers. Management expects selling, general and administrative expenses to increase on account of strategic investments. However, any significant increase in the same may hurt margins and in turn the bottom line.
What the Zacks Model Unveils
Our proven model does not conclusively show that Macy’s is likely to beat estimates this quarter. A stock needs to have both — a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Macy’s has a Zacks Rank #4 (Sell) and an Earnings ESP of -7.37%, which makes surprise prediction difficult.
Stocks With Favorable Combination
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Zumiez has an Earnings ESP of +0.45% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Abercrombie & Fitch has an Earnings ESP of +0.94% and a Zacks Rank #2.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Zumiez Inc. (ZUMZ) : Free Stock Analysis Report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report Macy's, Inc. (M) : Free Stock Analysis Report Telenav, Inc. (TNAV) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
WARNING: You are being watched by big-name travel apps
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Feb 20
And what travel apps should be doing instead
You can’t find me! | Photo by WIO
Sneaky eyes are on the rise.
No, not your neighbours’, but right on your hands.
That’s right — your phone.
According to a recent TechCrunch report, several popular iPhone apps track everything you do inside the app. They are secretly monitoring your screen and snooping around your bank account without you knowing it.
These apps include Air Canada, Abercrombie & Fitch, Hollister, Expedia, Hotels.com and even Singapore Airlines. 😲
Commonly known as the “session replay” feature, this modus operandi involves hiring a third-party company like Glassbox to embed the screening technology into a mobile application.
Glassbox’s software records each and every action the user does in the app and takes a screenshot. For travel apps like Air Canada, Glassbox will also take screenshots of sensitive information such as passport numbers and credit card details.
According to TechCrunch, none of the travel and retail apps using Glassbox technology disclosed this in their respective privacy policies. They also did not seek duly consent from its users.
The report found that Air Canada, in particular, did not properly encrypt its users’ data. In August last year, Air Canada reported that there was a data breach and 20,000 user profiles were leaked, some of which may include passport numbers and other sensitive information.
The problem is exacerbated by the fact that many of the downloaded apps are free and have been programmed by developers who may not value privacy or security.
The truth is, most companies don’t care about the privacy or security of your data. They care about having to explain to their customers that their data was stolen. — Zack Whittaker, TechCrunchWhat apps, especially travel apps, should do
The ability to create itineraries, book tours and pay for services has been tainted with data breaches and reports of apps tracking user activity and selling collected data to third parties.
So here’s what, in my opinion, travel apps should do to give users the privacy they rightfully own:
In fact, this leads us to decentralized applications (Dapps).
But before we can even realize the full potential of Dapps, we need to be familiar with its underlying technology — the blockchain. Here are some simple analogies by Principal Strategic that explain what blockchain means.
Blockchain alone is not private
Blockchain alone does not fix the privacy issue. Privacy can only be protected when all loopholes in a Dapp are closed, not with a single technology.
However, Dapps have an inherent advantage over its normal counterparts. The responsibility for maintaining the integrity and efficiency of the network that transmits messages is linked to the financial interests of many individuals, and not a centralised organisation that sees its users as mere products or datapoints.
This makes them (Dapps) more difficult to censor, manipulate and shut-down; it also makes large scale data mining of people’s digital lives impossible. — Iyke Aru, CointelegraphIt’s time to take back our privacy
We should be in control of our own data. Privacy is a fundamental human right after all.
To safeguard our privacy, we need Dapps now more than ever, where personal data is no longer stored on centralized servers owned by a handful of big names.
Likewise, businesses must recognize that transparency builds trust and it is critical to communicate clearly, honestly and often about what happens to consumers’ personal information.
In short, privacy is good for business. If businesses protect data and respect privacy, they will earn the trust of their customers, hence improving their reputation and growth.
This story is published in The Startup, Medium’s largest entrepreneurship publication followed by +426,678 people.Subscribe to receive our top stories here.
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