...Multibrand Portfolio: Ascena Retail Group, Inc.'s collection of well-known brands, including Ann Taylor and LOFT (33% of sales), Justice, Lane Bryant, maurices and dressbarn (each around 15% of sales), provides some end-market diversification and shared service cost advantages. In addition, several brands target the plus-size customer, a less-competitive sector than women's apparel, and half of Ascena's stores are located in strip or lifestyle centers, somewhat protecting the portfolio from mall traffic declines. Exposure to Challenged Sector: Despite some brand diversification, Ascena primarily competes in the mid-tier women's apparel sector, with Justice targeting tween girls. Mid-tier women's apparel retailers are struggling to grow revenue, given increased competition from low-priced players (i.e. the fast fashion and off-price sectors) and online retailers, exacerbated by mall traffic declines and the absence of a strong fashion cycle. Industry challenges have inflated inventory levels,...
