On Friday, shares of Ascena Retail Group Inc. are soaring, up around 21% in midday trading after the retailer reported first quarter fiscal 2017 results yesterday after the bell.
Ascena reported non-GAAP earnings per share of 18 cents (excluding 11 cents from non-recurring items), with revenues coming in at $1.678 billion and increasing 0.4% year-over-year. However, both the top and bottom line missed the Zacks Consensus Estimate.
Total comparable sales decreased 5% during the quarter, while gross margin increased to $1.014 billion, or 60.4% of sales.
David Jaffe, President and Chief Executive Officer 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."
Looking ahead to its second quarter, Ascena expects non-GAAP EPS to fall in the range of a loss of 5 cents to flat (Excluding restructuring, acquisition and integration related expenses, and non-cash ANN purchase accounting adjustments). The retailer continues to forecast full year fiscal 2017 non-GAAP EPS in the range of 60 cents to 65 cents.
Ascena is home to retail brands Ann Taylor, LOFT, Maurice’s, Dressbarn, Lane Bryant, Catherine’s, and Justice.
ASNA is currently a #4 (Sell) on the Zacks Rank, with a VGM score of ‘A.’
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Why is Ascena Retail (ASNA) Soaring 21% Today?
On Friday, shares of Ascena Retail Group Inc. are soaring, up around 21% in midday trading after the retailer reported first quarter fiscal 2017 results yesterday after the bell.
Ascena reported non-GAAP earnings per share of 18 cents (excluding 11 cents from non-recurring items), with revenues coming in at $1.678 billion and increasing 0.4% year-over-year. However, both the top and bottom line missed the Zacks Consensus Estimate.
Total comparable sales decreased 5% during the quarter, while gross margin increased to $1.014 billion, or 60.4% of sales.
David Jaffe, President and Chief Executive Officer 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."
Looking ahead to its second quarter, Ascena expects non-GAAP EPS to fall in the range of a loss of 5 cents to flat (Excluding restructuring, acquisition and integration related expenses, and non-cash ANN purchase accounting adjustments). The retailer continues to forecast full year fiscal 2017 non-GAAP EPS in the range of 60 cents to 65 cents.
Ascena is home to retail brands Ann Taylor, LOFT, Maurice’s, Dressbarn, Lane Bryant, Catherine’s, and Justice.
ASCENA RETAIL Price, Consensus and EPS Surprise
ASCENA RETAIL Price, Consensus and EPS Surprise | ASCENA RETAIL Quote
ASNA is currently a #4 (Sell) on the Zacks Rank, with a VGM score of ‘A.’
Stocks that Aren't in the News…Yet
You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015, with a stellar average gain of +26% per year. See these high-potential stocks now >>