ascena retail group Announces Holiday Sales, and Provides Fiscal Q2 and Full Year 2017 Guidance Update
January 10 2017 - 7:30AM
Business Wire
ascena retail group, inc. (NASDAQ:ASNA) (the “Company”)
today announced consolidated comparable sales decreased 3.1% over
the Holiday period as follows:
Holiday
2016*
Segment
Comparable
Sales
Premium Fashion
(4.1
%)
Ann Taylor
(8.2
%)
LOFT
(1.8
%)
Value Fashion
(6.0
%)
maurices
(7.1
%)
dressbarn
(4.6
%)
Plus Fashion
(3.7
%)
Lane Bryant
(5.1
%)
Catherines
1.6
%
Kids Fashion
2.7
%
Total ascena
(3.1
%)
* Saturday, November 19, 2016 through Monday
January 2, 2017
For the combined November / December fiscal periods,
consolidated comparable sales were down 4.4%.
Excluding restructuring, acquisition and integration related
expenses, and non-cash ANN purchase accounting adjustments, the
Company now expects non-GAAP EPS of $(0.11) to $(0.08) for the
fiscal second quarter, ending January 28, 2017. Based on ongoing
store traffic headwinds, the Company now expects full year fiscal
2017 non-GAAP EPS in the range of $0.37 to $0.42 for the 52-week
period ending July 29, 2017.
David Jaffe, President and CEO, commented, “We were disappointed
by our overall Holiday performance. Outside of discrete peaks
during the holiday season, we experienced stronger than expected
store traffic headwinds. As a result, we were forced into a more
highly promotional stance in order to move through inventory in the
face of softer overall consumer demand. At this juncture, we are
positioning our full year outlook assuming that the trend we
experienced through Holiday continues. We continue to aggressively
work our Change for Growth enterprise transformation, and are
focused on expense management opportunities to help us navigate the
challenging environment.”
Non-GAAP Financial
Results
As noted above, the Company has provided projected non-GAAP EPS,
which are forward-looking non-GAAP financial measures. Non-GAAP EPS
excludes costs that Management believes are not indicative of the
Company’s underlying operating performance such as (i) acquisition
and integration expenses, (ii) restructuring and other related
charges incurred under the Company's Change for Growth initiative,
and (iii) non-cash charges associated with the purchase accounting
adjustments of ANN's assets and liabilities to fair market value,
primarily reflecting inventory expense, depreciation and
amortization expense, and lease-related adjustments.
Non-GAAP EPS is considered an important indicator of the
Company’s operational performance as this measure eliminates
amounts that do not reflect the fundamental performance of the
Company’s businesses. Many investors also use a non-GAAP EPS
measure as a common basis for comparing the performance of
different companies. A general limitation of non-GAAP measures is
that they are not prepared in accordance with U.S. generally
accepted accounting principles and may not be comparable to
similarly titled measures of other companies due to differences in
methods of calculation and excluded items. Non-GAAP EPS should be
considered in addition to, not as a substitute for, the Company’s
Operating income (loss) and Net income (loss) per common share, as
well as other measures of financial performance and liquidity
reported in accordance with U.S. generally accepted accounting
principles.
Additionally, a reconciliation of the projected non-GAAP EPS for
Q2 and full year fiscal 2017, which are forward-looking non-GAAP
financial measures, to the most directly comparable GAAP financial
measures, is not provided because the Company is unable to provide
such reconciliation without unreasonable effort. The inability to
provide a reconciliation is due to the uncertainty and inherent
difficulty predicting the occurrence, the financial impact and the
periods in which the non-GAAP adjustments may be recognized. These
GAAP measures may include the impact of such items as restructuring
charges, acquisition and integration related expenses, asset
impairments and the tax effect of all such items. As previously
stated, the Company has historically excluded these items from
non-GAAP financial measures. The Company currently expects to
continue to exclude these items in future disclosures of non-GAAP
financial measures and may also exclude other items that may arise
(collectively, “non-GAAP adjustments”). The decisions and events
that typically lead to the recognition of non-GAAP adjustments,
such as actions under the Company's Change for Growth program, or
acquisition and integration expenses, are inherently unpredictable
as to if or when they may occur. For the same reasons, the Company
is unable to address the probable significance of the unavailable
information, which could be material to future results.
Forward-Looking
Statements
Certain statements made within this press release may constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to certain risks and uncertainties that
could cause actual results to differ materially. The Company does
not undertake to publicly update or review its forward-looking
statements even if experience or future changes make it clear that
our projected results expressed or implied will not be achieved.
Detailed information concerning a number of factors that could
cause actual results to differ materially from the information
contained herein is readily available in the Company’s most recent
Annual Report on Form 10-K.
About ascena retail group,
inc.
ascena retail group, inc. (NASDAQ:ASNA) is a leading national
specialty retailer offering apparel, shoes, and accessories for
women under the Premium Fashion segment (Ann Taylor, LOFT, and Lou
& Grey), Value Fashion segment (maurices and dressbarn), Plus
Fashion segment (Lane Bryant and Catherines), and for tween girls
under the Kids Fashion segment (Justice). ascena retail group, inc.
operates ecommerce websites and approximately 4,900 stores
throughout the United States, Canada and Puerto Rico.
For more information about ascena retail group, inc. visit:
ascenaretail.com, AnnTaylor.com, LOFT.com, louandgrey.com,
maurices.com, dressbarn.com, lanebryant.com, cacique.com,
Catherines.com, and shopjustice.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170110005711/en/
For Investors:ascena retail group, inc.Stacy Turnof,
551-777-6895VP, Investor
RelationsInvestor.Relations@ascenaretail.comorICR, Inc.James
Palczynski, 203-682-8229PartnerorFor Media:ascena retail
group, inc.Sue Ross, 218-491-2110EVP, Corporate
Affairssue.ross@ascenaretail.com
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