- First Quarter GAAP EPS of $0.07, Comparable Sales Down 5%
- First Quarter Non-GAAP EPS of $0.18
MAHWAH, N.J, 2016-Dec-05 — /EPR Retail News/ — ascena retail group, inc. (NASDAQ – ASNA) (the “Company”) today (Dec. 1, 2016) reported GAAP earnings for its fiscal first quarter ended October 29, 2016 of $0.07 per diluted share compared to a net loss of $0.10 per diluted share in the year-ago period.
Current and prior year first quarter results include certain acquisition and integration costs, as well as non-cash purchase accounting adjustments associated with the acquisition of ANN INC. (“ANN”), which was completed on August 22, 2015. In addition, the first quarter of Fiscal 2017 includes restructuring charges incurred under the Company’s Change for Growth program. A summary of year-over-year changes in restructuring and acquisition and integration expenses is presented in the notes to the unaudited condensed consolidated financial information, included herein. Finally, the prior year quarter includes the results of ANN, which comprises the Company’s Premium Fashion segment, only for the post-acquisition period from August 22, 2015 to October 31, 2015.
David Jaffe, President and Chief Executive Officer of ascena retail group, inc., commented, “I’m pleased that our efforts delivered first quarter non-GAAP earnings in the middle of our guidance range. We reacted decisively to unfavorable selling trends in September through more aggressive, but targeted and effective promotional activity. We also reduced operating costs and planned capital expenditures that will benefit full year earnings and free cash flow.”
Regarding second quarter performance, Jaffe commented, “Selling has picked up a bit following a very difficult period leading to Election Day. Total comp sales were up 2% for the nine day period from the weekend preceding Thanksgiving through Cyber Monday. Double-digit ecommerce growth over this period more than offset negative brick and mortar performance, which was caused by continued traffic headwinds.”
Jaffe concluded, “Market conditions are challenging, and at this time, we believe it is prudent to assume that they will remain so. We are focused on the areas of the business that we can control. We expect to drive down inventory levels, execute cost controls, and build a more flexible and responsive organization in general. While these actions will support our near-term performance, we will also continue to aggressively work on our enterprise transformation to create sustainable performance for the longer term through enhanced customer facing capabilities. The tough environment certainly highlights the necessity of the transformation we are executing, and we are working to ensure that ascena emerges as a strong competitor that can simultaneously drive value to a demanding customer and produce the returns expected by our shareholders.”
Fiscal First Quarter Results
Net Sales and Comparable Sales
Net sales for the first quarter of Fiscal 2017 were $1.678 billion compared to $1.672 billion in the year-ago period, which excluded roughly $122 million of ANN sales in the stub period that preceded the ANN acquisition date. The increase in sales from the inclusion of ANN for the full quarter was offset by the impact of the 5% comparable sales decline.
ascena retail group, inc.
Vice President of Investor Relations
ascena retail group, inc.
Executive Vice President, ascena Corporate Affairs Communications Officer
Source: ascena retail group, inc.