Cramer's 'Mad Money' Recap: Compromise Already!
In his final "Executive Decision" segment, Cramer sat down with David Jaffe, president and CEO of Ascena Retail (ASNA) , a retailer with five brands including Justice, Maurice's and Dress Barn.
Jaffe said Ascena is difficult for some analysts to understand because they always seem to focus on the brand that is struggling the most and tend to ignore those that are doing well.
He said in the case of Justice this quarter, the chain initiated a new promotion that drove a lot of incremental sales but did so at slightly lower margins. At the end of the day, Jaffe noted that Justice made more money but the analysts were focused solely on margins.
Jaffe said that in fashion you'll never get your merchandise 100% right, and sales at Dress Barn, for example, are not back to their pre-recession levels. That said, he noted Ascena is taking share from retailers including Kohl's (KSS) and Wal-Mart (WMT) in certain categories.
When asked about his company's acquisition of Charming Shoppes, Jaffe said it's working on integrating both companies and will be keeping the Lane Bryant brand but will also be winding down the Fashion Bug brand.
Finally, when asked about whether same-store sales are still relevant in an increasingly online world, Jaffe said they are. His company and others are moving towards a more omni-channel world where customers can buy online and return in store or buy online and pickup in store.
Cramer called the recent weakness in Ascena a gift for investors and a great opportunity.
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-- Written by Scott Rutt in Washington, D.C.
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