Bloomberg the Company

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

Markets & Finance

Merrill Lowers Duane Reade to 'Sell'


Merrill Lynch downgraded Duane Reade (DRD) to sell, from neutral.

Analyst Monica Aggarwal says she was perplexed by Duane Reade's most recent extensive reduction in forecasts. She says she had been hoping heavy gross margin erosion of the fourth quarter of 2002 was be behind company as front-end sales began to somewhat stabilize. Aggarwal says the model already had caution built in as she thought management guidance on a second-quarter call was overoptimistic.

However, front-end comparison at -1.1%, vs. her flat expectation, have huge detrimental impact on gross margins given the heavy reliance on this end of the business. She sees very little to be optimistic about. Aggarwal cut her 78 cents 2003 earnings per share estimate to 55 cents, and trimmed the $1.15 2004 estimate to 70 cents.


The Aging of Abercrombie & Fitch
LIMITED-TIME OFFER SUBSCRIBE NOW

Sponsored Financial Commentaries

Sponsored Links

Buy a link now!

 
blog comments powered by Disqus