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How Does Ascena Retail Group Compare to Its Peers?

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Ascena Retail and its peers

An analysis of Ascena Retail Group’s (ASNA) income statement in 3Q15 follows:

  • The gross profit margins of Ascena Retail, Kohl’s (KSS), Macy’s (M), Chico’s FAS (CHS), and L Brands (LB) are 54.50%, 38.95%, 40.86%, 53.79%, and 40.29%, respectively.

An analysis of Ascena Retail’s valuation follows:

  • The PBV (price-to-book value) ratios of Ascena Retail, Kohl’s, Macy’s, Chico’s FAS, and L Brands are 1.19x, 1.79x, 3.97x, and 3.32x, respectively.
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ETFs that invest in Ascena Retail

The Guggenheim S&P MidCap 400 Pure Value ETF (RFV) invests 1.90% of its holdings in Ascena Retail. RFV tracks a fundamentally weighted index of US-listed value companies.

The SPDR S&P Retail ETF (XRT) invests 1.08% of its holdings in Ascena Retail. XRT tracks a broad-based, equal-weighted index of stocks in the US retail industry.

The First Trust Consumer Discretionary AlphaDEX ETF (FXD) invests 1.90% of its holdings in Ascena Retail. FXD tracks an index of large and midcap US Consumer Discretionary stocks. The underlying index uses multifactor selection and a tiered equal weighting.

Ascena Retail and its ETFs

An analysis of Ascena Retail’s price movement follows:

  • The YTD (year-to-date) price movements of Ascena Retail, RFV, XRT, and FXD are 6.53%, -7.09%, -51.47%, and -0.44%, respectively.

An analysis of Ascena Retail’s valuation follows:

  • The PBV ratios of Ascena Retail, RFV, XRT, and FXD are 1.19x, 1.21x, 3.54x, and 4.02x, respectively.

The ETFs outperformed Ascena Retail Group based on the PBV ratio. However, Ascena Retail outperformed its ETFs based on price movement.

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