Ascena’s financial results for Q3 are out! And there is a slump.
Ascena Retail Group, Inc. (ASNA) released its third quarter financial report today (11 June), which showed a GAAP loss of US $ 1.20 per diluted share in comparison to a GAAP loss of US $ 0.20 a year back.
The present year reflects non-cash impairment charges of US $ 174 million.
The adjusted loss for Q3 was US $ 0.26 per diluted share compared to an adjusted loss of US $ 0.08 per diluted share a year back.
Gross margin slumped to US $ 722 million in Q3 of 2019, compared to US $ 753 million a year ago. This fall in gross margin rate was majorly owing to higher promotional activity to address elevated inventory levels and soft pre-Easter selling at company’s Premium Fashion and Kids Fashion segments.
Notably, the buying, distribution and occupancy expenses for Q3 went down to record US $ 276 million (21.8 per cent of sales) compared to US $ 280 million (22.1 per cent of sales) a year back. The operating loss during the same period was US $ 249 million compared to an operating loss of US $ 49 million a year ago.
While stating that the Board and the management are keen to take back Ascena to the days of sustainable top-line growth, Carrie Teffner, Interim Executive Chair, Ascena Retail Group, said “the focus for us will always be on creating value for our investors.”
Carrie added that with the divestiture of Maurices brand and closing down of Dressbarn brand, Ascena has closed down its under-performing Value Fashion segment and will be actually focusing on right sizing the corporate structure to support business with fewer but stronger brands. The aim is to deliver growth and profitability levels above the industry average.
Ascena Retail Group, Inc., is a specialty retailer offering apparels, shoes and accessories for women.