Retail market cap winners and losers from June 2002 through June 2003

A company’s market capitalization is the total dollar value of all outstanding shares. It’s calculated by multiplying the number of shares times the current market price. On this list, comeback kids include Gap Inc., Barneys New York and Caché. Family Dollar Stores is also in the winning column, an indication of the dollar venue’s growing clout. A number of teen concepts landed on the negative side, indicating that the market may be becoming saturated.




WINNERS

1
ELDER-BEERMAN STORES CORP.

2003 market cap: $67.7 million; 2002 market cap: $35.7 million
One-year change: 89.6 percent
Last month, the troubled regional department store chain signed a definitive merger agreement to be sold for about $180 million to Wright Holdings Inc. The merger provides the company with an infusion of capital for ongoing operations and expansion, and takes the company private.

2
PACIFIC SUNWEAR OF CALIFORNIA INC.

2003 market cap: $1 billion; 2002 market cap: $727.8 million
One-year change: 66.1 percent
Pacific Sunwear is riding the wave. The company, which is approaching $1 billion in sales, reported double-digit increases in June comps. More than 300 stores are in the planning stages through 2005, a 39 percent increase. PacSun, with 635 units, is expected to grow to 825.

3
GAP INC.

2003 market cap: $16.7 billion; 2002 market cap: $12.3 billion
One-year change: 35.3 percent
Gap Inc.’s turnaround continued in June, with a 10 percent jump in overall comps. Old Navy delivered an 11 percent gain. Gap and Banana Republic were up 8 percent and 7 percent, respectively. For fall, Madonna and Missy Elliot will strut their stuff in a TV commercial, wearing blue cords.

4
BARNEYS NEW YORK INC.

2003 market cap: $70.5 million; 2002 market cap: $55.6 million
One-year change: 26.8 percent
Barneys New York reported a net loss of $1.2 million in the first quarter,but the company said it strengthened its balance sheet and will continue to invest in growth opportunity businesses and reduce overhead. Barneys plans to open a Co-op store in South Beach, Miami in early September.5
CHICO’S FAS

2003 market cap: $1.8 billion; 2002 market cap: $1.49 billion
One-year change:21.1 percent
Chico’s FAS has found phenomenal success with suburban and ex-urban moms who need a little bit more fabric but aren’t yet ready for elastic waistbands. The Fort Myers, Fla.-based firm's sales leapt 40 percent to $130 million while comps for the quarter pushed ahead 13.2 percent.

6
ABERCROMBIE & FITCH CO.

2003 market cap: $2.77 billion; 2002 market cap: $2.39 billion
One-year change: 16.1 percent
Hollister and Abercrombie & Fitch cater to teens with surf and college preppy lifestyles. A&F produces the catalog parents love to hate and kids just love, a racy volume that features more skin than merch. The company’s comp-store sales declined 7 percent in May, and 5 percent in June.

7
ANN TAYLOR STORES CORP.

2003 market cap: $1.28 billion; 2002 market cap: $1.13 billion
One-year change: 13.5 percent
Ann Taylor’s chairman, J. Patrick Spainhour in May admitted the company’s merchandise lacked color, fashion and sophistication, after results showed comp-store sales dropped 6.5 percent in the first quarter. The fashion at Ann Taylor Loft, however, has been connecting with consumers, he said.

8
CLAIRE’S STORES INC.

2003 market cap: $1.24 billion; 2002 market cap: $1.1 billion
One-year change: 11 percent
Teen costume jewelry and accessories retailer Claire’s Stores Inc. upped its second-quarter earnings forecast to 23 cents a diluted share from 17 cents. In addition, the company said it now expects to report earnings per share of $1.15 for the full year, compared with 84 cents last year.

9
CACHE INC.

2003 market cap: $136.6 million; 2002 market cap: $124.2 million; One-year change: 10 percent
Caché’s fashions appeal to a woman who wants to make a statement (“Notice me!”) when she walks into a room. Apparently, wallflowers are a dying breed. The chain’s second quarter sales were up 9.1 percent to $56 million from $51.3 million. Same-store sales rose 4 percent for the period.10
FAMILY DOLLAR STORES INC.

2003 market cap: $6.56 billion; 2002 market cap: $6.1 billion
One-year change: 7.6 percent
Dollar stores are marching across the country, spreading their low prices and no-frills message. The $4.1 billion Family Dollar in Matthews, N.C. has more than 4,800 locations and is opening a new store every day. Perhapsmore impressive is its 28 consecutive quarters of profit growth.



LOSERS

1
FACTORY 2-U STORES INC.

2003 market cap: $75 million; 2002 market cap: $179.3 million
One-year change: -58.2 percent
San Diego-based Factory 2-U Stores had three consecutive months of sales increases, including a 3 percent rise in June. Bill Fields, the chain’s chairman and chief executive, said he’s targeting July comps to be in the range of between negative 2 percent and positive 2 percent.

2
THE WET SEAL INC.

2003 market cap: $311.6 million; 2002 market cap: $738.6 million; One-year change: -57.8 percent
Wet Seal is refocusing its core inventory with a relaunch of its private label denim line Blue Asphalt. “We’re very focused on casual and lifestyle,” said Susan O’Toole, president of the Wet Seal division. “We’re editing everything against the 16-year-old.”

3
GADZOOKS INC.

2003 market cap: $52 million; 2002 market cap: $115.3 million
One-year change: -54.9 percent
Girls will be girls, and that’s what Gadzooks is counting on. The Dallas-based casual clothing and accessories retailer decided in January to eliminate men’s merchandise and reinvent itself as a girls’ chain in the hope of reversing eroding earnings and comparable-store sales.

4
CHARLOTTE RUSSE HOLDING INC.

2003 market cap: $223 million; 2002 market cap: $473 million
One-year change: -52.9 percent
After earnings in the third quarter were sliced in half and same-store sales dropped by one-sixth, the company said it is refocusing fashion trends for both the Rampage and Charlotte Russe chains. Experts said Rampage missed the mark in terms of targeting its core customer.5
STEIN MART INC.

2003 market cap: $224 million; 2002 market cap: $494.3 million
One-year change: -50.6 percent
Weak sales and rising expenses pushed Stein Mart’s first-quarter net income down 86.7 percent. In June, Stein Mart posted a 4.9 percent drop. The company closed 16 underproductive doors, which accounted for $5.2 million in operating losses last year.

6
DILLARD’S INC.

2003 market cap: $1.12 billion; 2002 market cap: $2.21 billion
One-year change: -49.2 percent
After “shockingly bad” fourth-quarter results, William Dillard II, the retailer’s chairman and ceo, admitted that Wal-Mart and an increasingly robust Kohl’s are chipping away at the company’s market share. First-quarter profits, exclusive of special items were a fraction of last year’s.

7
WILSONS THE LEATHER EXPERTS INC.

2003 market cap: $146.8 million; 2002 market cap: $283.7 million; One-year change: -48.3 percent
Wilsons has been struggling with weak sales in its core leather division and the ill fiscal effects of poorly timed acquisitions of travel product retailers before the Sept. 11 terrorist attacks.

8
DEB SHOPS INC.

2003 market cap: $257.3 million; 2002 market cap: $460.6 million; One-year change: -44.1 percent
Deb Shops, a 330-unit specialty retailer based in Philadelphia, sells regular and plus-sized apparel and accessories to juniors. The company’s comp-store sales decreased 11.7 percent last month and total sales fell 7.8 percent to $24.1 million from $26.2 million.

9
CHARMING SHOPPES CORP.

2003 market cap: $546.8 million; 2002 market cap: $976.5 million; One-year change: -44 percent
Moody’s placed its ratings of approximately $200 million asset-backed debt issued by Charming Shoppes Master Trust on review for possible downgrade, after reporting errors in monthly service reports last year. Compounding the bad news, June same-store sales fell 3 percent.

10
SEARS, ROEBUCK & CO.

2003 market cap: $10.33 million; 2002 market cap: $17.11 million; One-year change: -39.6 percent
Triple-digit percentage gains from credit and financial products, and weak year-ago comparisons offset double-digit declines at retail for the second quarter. Results dramatized the pressure on Sears’ stores now that the sale of its credit and financial services unit to Citigroup is under way.SOURCE: COMPANY REPORTS
*COMPANIES WITH A MARKET CAP MINIMUM OF $50 MILLION

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