Earnings Coverage - Ascena Retail

LONDON, October 6, 2014 /PRNewswire/ --

Investor-Edge.com has issued free earnings coverage on Ascena Retail Group Inc. (NASDAQ: ASNA). On September 22, 2014, the company reported its Q4 and full year 2014 financial results (period ended July 26, 2014). Click on http://www.investor-edge.com/FreeReports to read our free earnings review on Ascena Retail. During Q4 FY14, Ascena Retail Group Inc.'s net sales decreased 1.3% Y-o-Y. Further, the company's full year FY14 earnings from continuing operations fell by $0.13 per diluted share from FY13. Our free coverage report can be accessed at:

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

Earnings Overview  

During Q4 FY14, Ascena Retail Group Inc.'s net sales declined to $1,182.4 million from $1,197.7 million in the preceding year quarter. Ascena Retail Group Inc.'s Q4 FY14 net income stood at $15.7 million, compared to $29.8 million in the prior year quarter. The company's Q4 FY14 earnings from continuing operations declined to $15.9 million or $0.10 per diluted share from $38.3 million or $0.23 in Q4 FY13. Furthermore, the company's adjusted earnings from continuing operations during the reported quarter fell to $0.13 per diluted share, from $0.34 in Q4 FY13. The free research on ASNA can be downloaded as in PDF format at:

http://www.Investor-Edge.com/ASNAFreeReport

For the FY14 Ascena Retail Group Inc.'s net sales increased to $4,790.6 million from $4,714.9 million in the FY13. Analysts from Bloomberg were anticipating the company to report full year FY14 net sales of $4,816.0 million. However, the company's net income for FY14 narrowed to $133.4 million, from $151.3 million in the prior year. The company's FY14 net income also trailed Bloomberg analysts' expectations of $165.67 million. Ascena Retail Group Inc.'s FY14 earnings from continuing operations fell to $138.2 million or $0.84 per diluted share from $155.2 million or $0.95 in FY13. Further, the company's adjusted earnings from continuing operations for FY14 decreased to $1.00 per diluted share, from $1.25 in the previous year.

David Jaffe, President and CEO of Ascena Retail Group Inc., said that despite mixed results across the company's portfolio and continuing soft traffic patterns, Q4 FY14 EPS was in line with the company's expectations. He stated that Ascena Retail Group's management is yet to see sustained evidence of market improvement, and as a result, the company is maintaining a conservative outlook as it enters the Fall season. Sign up and read the free analyst's notes on ASNA at:

http://www.Investor-Edge.com/ASNA-06102014

Mr. Jaffe further stated that Ascena Retail Group will continue to focus on managing what it can control, such as refining its merchandising execution, maintaining focus on inventory levels and expense management, developing an integrated ecommerce platform for its customers, and driving efficiency improvements through its strategic investments. The company's CEO declared that Ascena Retail's final brand is in the process of moving into its retail distribution centre in Ohio, and the company remains on track to have all its brands operating out of its new ecommerce fulfilment centre by Spring of calendar 2015. Mr. Jaffe added that, FY15 will see the continuation of a critical, multi-year investment to build out the company's omnichannel platform. Ascena Retail Group will continue to create a business model that will drive sustainable long term value for its shareholders.

Providing guidance for fiscal year ending July 2015, Ascena Retail Group said that it expects adjusted EPS from continuing operations in the range of $0.90 to $1.00, with mid-to-high single digit EBITDA growth. Net new stores are expected to increase 30-40 units while depreciation is anticipated to grow in double-digits, with projected expense between $210 million and $215 million. Further, the capital expenditure is projected in the range of $350 to $375 million. Visit Investor-Edge and access the latest research on ASNA at:

http://www.Investor-Edge.com/ASNAEarningsCoverage

Stock Performance 

A day after the earnings release, on September 23, 2014, shares in Ascena Retail Group Inc. plummeted 16.82%, ending the session at $13.75. The stock has fallen by 5.24% since then and on the last close, Friday, October 03, 2014, it finished at $13.03. A total of 2.04 million shares were traded, which was above its three months average volume of 1.19 million shares. Over the previous three trading sessions and over the last one month, the company's shares have declined 2.03% and 22.62%, respectively. Moreover, the stock has lost 38.42% from the beginning of 2014. Shares in Ascena Retail Group Inc. are trading below their 50-day and 200-day moving averages of $16.08 and $17.56, respectively. Furthermore, the stock traded at a PE ratio of 13.16 and has a Relative Strength Index (RSI) of 19.47.

In the last one month, Ascena Retail Group Inc. has reported four transactions by three insiders. On September 25, 2014, John Sullivan, COO and EVP of Ascena Retail Group Inc., sold 3,427 shares of the company, worth $45,853.30, at a price of $13.38 per share. On the same day, Gene Wexler, SVP, General Counsel and Assistant Secretary of Ascena Retail Group Inc., disposed 1,286 shares, worth $17,206.70 at a price of $13.38 per share. In addition, on September 30 and October 01, 2014, respectively, Michael Rayden, Director of Ascena Retail Group Inc., sold a total of 13,000 shares, worth $171,363.50, at an average price of $13.18 per share. Complimentary in-depth research on ASNA is available at:

http://www.Investor-Edge.com/ASNAInsiderTrading

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