Ascena Retail Group (ASNA) Pleased with Justice Comps; Cowen Reiterates Market Perform
Cowen reiterated a Market Perform rating and $14.00 price target on Ascena Retail Group (NASDAQ: ASNA) following the company's 1Q earnings report. Management was most pleased with Justice during the period as comps grew +20% y/y despite reduced promotional activity y/y, while ANN also exceeded expectations. The EPS beat was GM led, driven by Justice +700bps y/y, ANN +250bps y/y, and maurices & Lane Byrant up +200bps y/y each.
Analyst Oliver Chen commented, "Justice & ANN Deliver as Planned, But Acknowledge Work Remains & Comps Still Running -LSD. We're most impressed by Justice progress with 1Q segment GM +700bps y/y, 1Q avg. selling price +12% y/y & comps +20% over Thurs-Cyber Mon; but, we're mindful 2Q QTD comps down -LSD (ex. Justice) as biz decelerated in Nov. & the holiday weekend was mixed. Reit. Market Perform on fair risk/reward."
For an analyst ratings summary and ratings history on Ascena Retail Group click here. For more ratings news on Ascena Retail Group click here.
Shares of Ascena Retail Group closed at $11.78 yesterday.