CHH continues to hit new lows as analyst says earnings may not cover debt payment.CHH CHH Cartilage Hair Hypoplasia CHH Crustacean Hyperglycemic Hormone CHH Carter Holt Harvey Limited (Australia & New Zealand) CHH Chuan Hup Holdings Limited (Singapore) CHH Certified Hardware Hosineer continues to hit new lows as analyst says earnings may not cover debt payment Top L.A. retailer faces stiff competition in state Carter Hawley Hale Stores Carter Hawley Hale Stores was an American retailer based in Southern California. Known through its history as Broadway-Hale Stores and Broadway Stores, over time, it acquired other retail store chains in regions outside California home base, and became in certain retail sectors a Inc. stock has fallen 25 percent in 21 days, and analysts are beginning to openly question whether the Los Angeles-based retailer has the wherewithal to survive. "We're very concerned with whether they survive or not," said Tony Howard
Anthony Bourne Howard (b. , analyst with Crowell Weedon. Carter Hawley Hale reported August sales of $199.7 million, an increase of 1.1 percent from August 1989. But this isn't nearly enough to keep pace with an inflation rate of 4 percent to 5 percent, Howard said. The company's stock hit a new 52-week low of $3 a share on Sept. 19, and its unsecured bonds are selling at a huge discount. At the close of the week of Sept. 14, one set of bonds was selling at $70.50 and the other was selling at $60.25. "That is worse than junk bonds," Howard said. Edward Weller, an analyst with Montgomery Securities, compared the performance of Carter Hawley Hale's stock to the performance of other department store stocks monitored by Montgomery Securities. In August Carter Hawley Hale's stock fell 24 percent, while the other stocks fell an average of 14 percent. "California retail sales have been sloppy since last fall," Weller said. Carter Hawley Hale has been up on the racks for a number of years. In the mid 1980s, the company fought two takeover attempts from Ohio-based The Limited Inc. and subsequently announced a massive restructuring in 1987. Under the restructuring, Carter Hawley Hale retained 114 department stores This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department stores. , and transferred its specialty store division into a newly formed Delaware corporation called The Neiman Marcus Group. Carter Hawley Hale's revenues and earnings have remained steady since the restructuring. In 1987, the company lost $178.65 million on revenues of $2.869 billion, but in 1988 it earned $17.66 million on similar revenues of $2.617 billion. Revenues remained relatively unchanged at $2.787 for 1989, but earnings fell 24 percent to 13.47 million. In 1990, revenues rose to $2.858 billion in 1990, with earnings to be reported to be spoken of; to be mentioned, whether favorably or unfavorably. See also: Report in October. In 1990, "the company will probably not cover interest expense with earnings before interest and taxes In financial and business accounting, earnings before interest and taxes (EBIT) is a measure of a firm's profitability that excludes interest and income tax expenses.[1] EBIT = Operating Revenue – Operating Expenses + Non-operating Income ," said Richard Nelson, an analyst with Duff & Phelps Inc. Weller estimated that Carter Hawley Hale would report 1990 earnings of 5 cents a share, followed by an optimistic estimate of 50 cents or 60 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. in 1991, predicting the company would pick up. Duff & Phelps has added Carter Hawley Hale to its Watch List for potential downgrades, citing increasing competition in California markets and the added uncertainties caused by the Middle East crisis. Carter Hawley Hale management and employees own 40.7 percent of the company's stock under a profit sharing profit sharing, arrangement by which employees receive, in addition to their wages, a share of the net profits of a business. The purpose is to give them an incentive to increase their output through enhanced morale, less wasteful use of materials, better care of plan. |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion