Ascena Retail (ASNA) Updates Comps Outlook, Lowers FY14 EPS Expectations
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Ascena Retail Group, Inc. (Nasdaq: ASNA) announced sales results for the combined November and December Holiday period ended December 28, 2013. The Company also announced that, due to lower than planned Holiday sales, it is lowering earnings per share guidance for its current fiscal year ending July 26, 2014.
The Company noted that combined comparable store and e-commerce sales for the fiscal months of November and December increased 1% on a consolidated basis.
ascena Consolidated now expected up 1 percent, with ascena e-Commerce up 27 percent and ascena stores down 2 percent.
David Jaffe, President and Chief Executive Officer of Ascena Retail Group, Inc., commented, “A challenging Holiday selling season resulted in increased promotional activity. We successfully cleared excess inventory and have taken the necessary markdowns in the second quarter to transition cleanly into the spring season. As a result, we now believe full year adjusted diluted earnings per share guidance in the range of $1.10 to $1.15 is more appropriate, versus our previous guidance of $1.25 to $1.30.”
*** The Street was looking for FY14 EPS of $1.32.
The Company noted that its updated guidance for Fiscal 2014 excludes one-time, acquisition-related integration, restructuring and purchase accounting costs that may be incurred related to the Charming Acquisition. The Company further noted that its guidance is based upon various assumptions, including low single-digit spring season comparable store sales and continued double-digit e-commerce sales growth. For the full year, the Company continues to plan to open approximately 185 stores and close approximately 135 stores, ending the fiscal year with approximately 3,900 Justice, Lane Bryant, maurices, dressbarn and Catherines stores in operation.
The Company noted that combined comparable store and e-commerce sales for the fiscal months of November and December increased 1% on a consolidated basis.
ascena Consolidated now expected up 1 percent, with ascena e-Commerce up 27 percent and ascena stores down 2 percent.
David Jaffe, President and Chief Executive Officer of Ascena Retail Group, Inc., commented, “A challenging Holiday selling season resulted in increased promotional activity. We successfully cleared excess inventory and have taken the necessary markdowns in the second quarter to transition cleanly into the spring season. As a result, we now believe full year adjusted diluted earnings per share guidance in the range of $1.10 to $1.15 is more appropriate, versus our previous guidance of $1.25 to $1.30.”
*** The Street was looking for FY14 EPS of $1.32.
The Company noted that its updated guidance for Fiscal 2014 excludes one-time, acquisition-related integration, restructuring and purchase accounting costs that may be incurred related to the Charming Acquisition. The Company further noted that its guidance is based upon various assumptions, including low single-digit spring season comparable store sales and continued double-digit e-commerce sales growth. For the full year, the Company continues to plan to open approximately 185 stores and close approximately 135 stores, ending the fiscal year with approximately 3,900 Justice, Lane Bryant, maurices, dressbarn and Catherines stores in operation.
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