On Tuesday, shares of Ascena Retail Group Inc. are plummeting, down over 27% in morning trading after the company reported its fiscal fourth quarter and fiscal 2016 financial results.
Ascena Retail reported non-GAAP adjusted earnings per diluted share of 8 cents, missing the Zacks Estimate of 17 cents per share. On a GAAP basis, revenues came in at $1.812 billion, up 54% from the year ago period thanks to the acquisition of ANN, which was not included in the prior year. Comparable sales at the legacy Ascena brands (excluding ANN) were down 4% in the fourth quarter.
David Jaffe, President and Chief Executive Officer Ascena, said, "Fiscal 2016 was a challenging year for [A]scena, characterized by a highly competitive selling environment and significant store traffic headwinds. While we are seeing good customer demand during peak periods, off-peak demand has been inconsistent, and fourth quarter financial performance fell well below our expectations."
Gross margin increased to $1.041 billion, or 57.5% of sales, for the fourth quarter on a GAAP basis. This compared to $638 million, or 54.5% of Q4 sales last year with dollar growth driven mostly by the acquisition of ANN, which added $355 million in the fourth quarter.
Looking ahead, Ascena Retail now expects full-year fiscal 2017 earnings in the range of 60 cents to 65 cents a share. Revenue is forecasted in the range of $6.9 billion to $7 billion. Analysts estimated a profit of 83 cents per share on revenue of $7.17 billion, according to Thomson Reuters.
Ascena Retail owns brands like Ann Taylor, LOFT, Dressbarn, Justice, Catherines, Lou & Grey, Lane Bryant, and Maurices.
Currently, ASNA is a #3 (Hold) on the Zacks Rank and has lost 17.56% year-to-date.
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Why is Ascena Retail (ASNA) Stock Plummeting 27% Today?
On Tuesday, shares of Ascena Retail Group Inc. are plummeting, down over 27% in morning trading after the company reported its fiscal fourth quarter and fiscal 2016 financial results.
Ascena Retail reported non-GAAP adjusted earnings per diluted share of 8 cents, missing the Zacks Estimate of 17 cents per share. On a GAAP basis, revenues came in at $1.812 billion, up 54% from the year ago period thanks to the acquisition of ANN, which was not included in the prior year. Comparable sales at the legacy Ascena brands (excluding ANN) were down 4% in the fourth quarter.
David Jaffe, President and Chief Executive Officer Ascena, said, "Fiscal 2016 was a challenging year for [A]scena, characterized by a highly competitive selling environment and significant store traffic headwinds. While we are seeing good customer demand during peak periods, off-peak demand has been inconsistent, and fourth quarter financial performance fell well below our expectations."
Gross margin increased to $1.041 billion, or 57.5% of sales, for the fourth quarter on a GAAP basis. This compared to $638 million, or 54.5% of Q4 sales last year with dollar growth driven mostly by the acquisition of ANN, which added $355 million in the fourth quarter.
Looking ahead, Ascena Retail now expects full-year fiscal 2017 earnings in the range of 60 cents to 65 cents a share. Revenue is forecasted in the range of $6.9 billion to $7 billion. Analysts estimated a profit of 83 cents per share on revenue of $7.17 billion, according to Thomson Reuters.
Ascena Retail owns brands like Ann Taylor, LOFT, Dressbarn, Justice, Catherines, Lou & Grey, Lane Bryant, and Maurices.
ASCENA RETAIL Price, Consensus and EPS Surprise
ASCENA RETAIL Price, Consensus and EPS Surprise | ASCENA RETAIL Quote
Currently, ASNA is a #3 (Hold) on the Zacks Rank and has lost 17.56% year-to-date.
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