Post-Earnings Analysis - Ascena Retail

LONDON, December 23, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings analysis on Ascena Retail Group Inc. (NASDAQ: ASNA). On December 02, 2014, the company reported its financial results for Q1 FY15 (period ended October 25, 2014). Click on http://www.investor-edge.com/FreeReports to read our free earnings review on Ascena Retail Group Inc. (Ascena Retail). During Q1 FY15, the company's net sales fell by $2.4 million on a Y-o-Y basis and its net income from continuing operations per diluted share decreased by $0.01 from Q1 FY14. The president and CEO of Ascena Retail, David Jaffe, stated his satisfaction that the company delivered its Q1 FY15 results in line with its expectations. Our free coverage report can be accessed at:

http://www.investor-edge.com/register

Earnings Overview 

During Q1 FY15, Ascena Retail's net sales stood nearly flat at $1,194.2 million compared to $1,196.6 million in Q1 FY14. The company's Q1 FY15 net sales slightly exceeded Bloomberg analysts' forecasts of $1,193.0 million. The company's new store growth at Justice and maurices was offset by negative total combined comparable sales at Justice. Ascena Retail's Q1 FY15 gross margin increased to $694.5 million, or 58.2% of sales, from $693.2 million, or 57.9% of sales, in Q1 FY14. The free research on ASNA can be downloaded as in PDF format at:

http://get.Investor-Edge.com/pdf/?c=Ascena%20Retail&d=23-Dec-2014&s=ASNA

In Q1 FY15, Ascena Retail's buying, distribution and occupancy (BD&O) costs increased to $214.4 million from $207.6 million in Q1 FY14. The increase in expense primarily reflected growth of merchandising and design function capability along with new store growth. The company's selling, general and administrative (SG&A) expenses for Q1 FY15 stood at $354.5 million compared to $348.1 million in Q1 FY14. The increase in expense was primarily attributable to new store growth, higher marketing costs, and support of the growing direct channel. Ascena Retail's Q1 FY15 operating income declined to $66.1 million from $85.6 million in Q1 FY14. Further, the company's income from continuing operations for Q1 FY15 decreased to $53.5 million, or $0.32 per diluted share, from $54.3 million, or $0.33 per diluted share in Q1 FY14. Net Income for Q1 FY15 stood at $53.5 million or $0.32 per diluted share compared with $52.6 million or $0.32 per diluted share in Q1 FY14. However, the company's reported net income outperformed Bloomberg analysts' forecast of $41.2 million, or $0.28 per diluted share.

Mr. Jaffe informed that conditions remain challenging as Ascena Retail transitions into Holiday, and the company will react appropriately to drive sales to ensure that it ends the season at targeted inventory levels. Sign up and read the free analyst's notes on ASNA at:

http://get.Investor-Edge.com/pdf/?c=Ascena%20Retail&d=23-Dec-2014&s=ASNA

Ascena Retail reaffirmed its guidance for FY15, expecting adjusted diluted EPS from continuing operations in the range of $0.90 to $1.00. The above guidance excludes any acquisition-related, integration and restructuring costs that may be incurred during the fiscal year. The company continues to assume flat to modest positive total comparable growth for FY15, and now expects total capital expenditures at the lower end of the $350 million to $375 million range.

Stock Performance  

On the day following the earnings release, December 3, 2014, Ascena Retail's stock ended the session at $12.21, down 5.71%. Although the stock has moved both ways since then, the losses have outweighed the gains so far. On the last close, Monday, December 22, 2014, the stock finished 1.96% higher at $11.98, after vacillating between $11.56 and $12.00. A total of 2.32 million shares were traded, which was above its three months average volume of 2.10 million shares. Over the previous three trading sessions and over the last one month, the company's shares have lost 1.24% and 9.28%, respectively. Further, the stock has plummeted 43.38% since the start of 2014mp. Shares in Ascena Retail closed below their 50-day and 200-day moving averages of $12.35 and $15.58, respectively. Furthermore, the stock traded at a PE ratio of 11.28 and has a Relative Strength Index (RSI) of 38.08. Visit Investor-Edge and access the latest research on ASNA at:

http://get.Investor-Edge.com/pdf/?c=Ascena%20Retail&d=23-Dec-2014&s=ASNA

Sneak Peek to Corporate Insider Trading 

In the last one month, there were 2 insider transactions made by 2 individuals. Between December 10, 2014 and December 18, 2014, a total of 18,950 shares have been sold at an average price of $12.10 per share and for a total value of $229,280. On December 10, 2014, Michael W. Rayden, CEO Justice, disposed 15,000 shares, at a price of $12.13 per share while on December 18, 2014, Ronald Robinson, President of Ascena Global Sourcing at Ascena Retail, sold 3,950 shares at a price of $11.99 per share. Complimentary in-depth research on ASNA is available at:

http://get.Investor-Edge.com/pdf/?c=Ascena%20Retail&d=23-Dec-2014&s=ASNA

About Investor-Edge.com 

At Investor-Edge, we provide our members with a simple and reliable way to leverage our economy of scale. Most investors do not have time to track all publicly traded companies, much less perform an in-depth review and analysis of the complexities contained in each situation. That's where Investor-Edge comes in. We provide a single unified platform for investors' to hear about what matters. Situation alerts, moving events, and upcoming opportunities.

===============

EDITOR'S NOTES:

===============

1. This is not company news. We are an independent source and our views do not reflect the companies mentioned.

2. Information in this release is produced on a best efforts basis by Rohit Tuli, a CFA charterholder. The content is then further fact checked and reviewed by an outsourced research provider. However, we are only human and are prone to make mistakes. If you notice any errors or omissions, please notify us below.

3. This information is submitted as a net-positive to companies mentioned, to increase awareness for mentioned companies to our subscriber base and the investing public.

4. If you wish to have your company covered in more detail by our team, or wish to learn more about our services, please contact us at pubco [at] http://www.investor-edge.com.

5. For any urgent concerns or inquiries, please contact us at compliance [at] http://www.investor-edge.com.

6. Are you a public company? Would you like to see similar coverage on your company? Send us a full investors' package to research [at] http://www.investor-edge.com for consideration.

COMPLIANCE PROCEDURE

Content is researched, written and reviewed on a best-effort basis. This document, article or report is prepared and authored by Investor-Edge, represented by Rohit Tuli, CFA. An outsourced research services provider has only reviewed the information provided by Investor-Edge in this article or report according to the procedures outlined by Investor-Edge. Investor-Edge is not entitled to veto or interfere in the application of such procedures by the outsourced provider to the articles, documents or reports, as the case may be.

NOT FINANCIAL ADVICE

Investor-Edge makes no warranty, expressed or implied, as to the accuracy or completeness or fitness for a purpose (investment or otherwise), of the information provided in this document. This information is not to be construed as personal financial advice. Readers are encouraged to consult their personal financial advisor before making any decisions to buy, sell or hold any securities mentioned herein.

NO WARRANTY OR LIABILITY ASSUMED

Investor-Edge is not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted by Investor-Edge whatsoever for any direct, indirect or consequential loss arising from the use of this document. Investor-Edge expressly disclaims any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Investor-Edge does not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE Investor-Edge

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED