Stock News in Focus: Apex Global Brands (NASDAQ:APEX)

Apex Global Brands (NASDAQ:APEX) changed -2.36% to recent value of $0.96. The stock transacted 6312 shares during most recent day however it has an average volume of 20.64K shares. It spotted trading -65.96% off 52-week high price. On the other end, the stock has been noted 26.07% away from the low price over the last 52-weeks.

On Dec. 20, 2019, Apex Global Brands (NASDAQ:APEX) a global brand ownership and marketing organization that manages, creates and elevates a growing portfolio of high-equity lifestyle brands,  revealed financial results for its third quarter of Fiscal 2020, which ended November 2, 2019.

Retail and industry headwinds continued to challenge our growth and profitability during the third quarter, resulting in an EBITDA debt covenant miss, to which our senior lender has agreed to forbear its rights under the senior secured credit facility through February 28, 2020, said Henry Stupp, Chief Executive Officer of Apex Global Brands. The weakening of the British pound, increased U.S. tariffs and the impact of Brexit continued to hamper our progress in core markets. While recent news related to the elimination of tariffs and the strengthening of the British Pound are positives for our industry, these macroeconomic conditions have impacted our ability to return to revenue growth and increased profitability in the near term.

Mr. Stupp continued, Despite these challenges, we believe that the underpinning for future growth and profitability for the brands we own, the brands we create and the brands we elevate, combined with our more efficient operating model, should allow for increased revenue and profit in the future. We continue to see growing interest for our brands including a new long-term partnership for the Tony Hawk brand in China, Japan and South Korea, where we recently signed a multi-year partnership with a large, experienced retailer and wholesaler, United Trademarks Group (UTG). UTG is a brand expert across Asia, and we strongly believe that this partnership will help us maximize the wholesale distribution of Tony Hawk licensed products.

APEX has an operating margin of 29.40% while its profit margin remained -17.90% for the last 12 months. Its earnings per share (EPS) expected to touch remained 75.80% for this year while earning per share for the next 5-years is expected to reach at 15.00%.

The company has 5.44M of outstanding shares and 4.63M shares were floated in the market. According to the most recent quarter its current ratio was 0.7 that represents company’s ability to meet its current financial obligations. The price moved ahead of -8.47% from the mean of 20 days, -9.69% from mean of 50 days SMA and performed -43.73% from mean of 200 days price. Company’s performance for the week was -6.81%, -4.95% for month and YTD performance remained -36.62%.

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