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Retailer of women's clothing $ASNA posted lower 3Q16 results, hurt by integration costs, interest expense incurred under the $1.8Bil term loan & the effect of non-cash purchase accounting adjustments. $ASNA said net income fell 38.5% to $15MM, or $0.08 per share, and revenue rose 45.11% to $1.67Bil. Excluding items, $ASNA earned $0.15 per share.
$ASNA stated that while the Justice apparel business was down in 1Q18, it significantly outperformed its inventory investment. The company is investing behind this as it gets deeper into holiday, and is hopeful to see it turn to positive comps.
$ASNA expects approx. $40MM in procurement savings in FY18 and has realized $12MM of such savings in 1Q18. The company’s fleet optimization work is progressing well. Annual run-rate savings from completed real estate negotiations stand at $25MM and $ASNA continues to track towards its $50MM commitment.
$ASNA reported net income of $7MM or $0.03 per share in 1Q18 compared to $14MM or $0.07 per share in 1Q17. Net sales were $1.59Bil compared to $1.67Bil in the year-ago period. The decrease in sales reflected the impact of a 5% comparable sales decline, which was caused primarily by a mid-single digit decline in average selling price.
$ASNA said that as part of its transformation efforts, the company is investing in leading edge planning and marketing capabilities to support top-line growth and improved margin. The company also remains on track to deliver cost savings of $250-300MM.
Specialty retailer $ASNA reported a 4Q17 net loss, driven by the comp sales decline of 4% and costs linked to the company's Change for Growth transformation program. Net loss was $15.8MM or $0.08 per share vs. a net income of $13.8MM or $0.07 per share a year ago. Revenue declined 8.5% to $1.65Bil. Adjusted EPS was $0.05 per share.
$ASNA, a retail group, appointed Gary Muto to the newly created position of President and CEO of ascena Brands, with responsibility to drive top-line growth. Brian Lynch is new President and COO of $ASNA. Muto and Lynch will continue to report to Chairman and CEO David Jaffe. $ASNA expects this to deliver $250-300MM in cost savings through FY19.
Specialty retailer $ASNA reported a net loss for 3Q17, driven by a non-cash pre-tax impairment charge of $1.3Bil. Net loss for the quarter was $1.03Bil or $5.29 loss per share compared to a net income of $0.15Bil or $0.08 per share a year ago. Revenue declined 6.24% to $1.56Bil, driven by a 8% comparable sales decline.
Retail chain $ASNA appointed Marc Lasry and Stacey Rauch as members of its board of directors, effective immediately. Earlier, Lasry had served as a member of the board from February 2004 to October 2006. Rauch is a Director Emeritus of McKinsey and Company, where she was a leader in McKinsey's Retail and Consumer Goods Practices.
$ASNA is nearing completion of the ANN Inc integration activity and remains on track to realize the combined $235MM target in deal synergies and cost savings. The company is committed to $150MM in cost savings by FY19. This is comprised of operating model efficiencies and non-merchandise procurement savings.
In 2Q17, $ASNA’s Plus Fashion segment comparable sales were down 4% on a 10% decline in store traffic. Lane Bryant comparable sales were down 5% while Catherines delivered flat comps. Comparable sales in the Kids Fashion segment were down 1% on a 3% decline in store traffic.
During 2Q17, comparable sales in $ASNA’s Premium Fashion segment were down 5% on a 9% decline in store traffic. LOFT comparable sales were down 2% on an 8% decline in store traffic. Ann Taylor comparable sales were down 9% on an 11% decline in store traffic. Comparable sales in the Value Fashion segment were down 6% on an 11% decline in traffic.
$ASNA saw the trend towards ecommerce transactions and the growing influence of online engagement on traditional brick-and-mortar activity across its sector. The company invested heavily in its omnichannel platform over a multi-year period and it continues to evolve its organization to serve customers in this new retailing paradigm.