Ascena Retail Group Inc. (NASDAQ:ASNA) Q4 2019 Earnings Conference Call Transcript

Oct 03, 2019 • 04:30 pm ET

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Ascena Retail Group Inc. (NASDAQ:ASNA) Q4 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Fourth Quarter 2019 ascena retail group Earnings Conference Call. As a reminder, this conference call is being recorded.

I would now like to introduce your host for today's conference, Jean Fontana of ICR. You may begin.

Executive
Jean Fontana

Thank you. Good afternoon, everyone, and welcome to ascena's fourth quarter fiscal 2019 earnings call.

Before we begin, I'd like to remind you that certain statements and information made available on today's call may be deemed to constitute forward-looking statements. These forward-looking statements reflect the Company's current expectations as of October 3, 2019, and are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially. For factors that could cause actual results to differ from the forward-looking statements discussed on today's call, please see the risks and uncertainties identified under the heading Risk Factors in ascena's annual and quarterly reports filed with the SEC. The Company undertakes no obligation to revise or update any forward-looking statements.

Additionally, today's call may refer to non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures discussed today is included in our earnings release, a copy of which was filed with the US Securities and Exchange Commission in the current report Form 8-K earlier today. Please refer to the Investors section of the ascenaretail.com for a replay of today's conference call. Note that the Company has posted a supplemental slide package to augment information provided on today's call on its IR website and as an attachment to its 8-K released earlier today. This supplemental package includes details about certain non-GAAP items including non-cash impairment charges.

Participating in today's call are Carrie Teffner, Interim Executive Chair; Gary Muto, Chief Executive Officer; and Dan Lamadrid, Chief Financial Officer.

Thank you, and I will now hand the call over to Carrie.

Executive
Carrie W. Teffner

Thank you, Jean, and thank you all for joining us this afternoon. We made pivotal changes in the back half of fiscal 2019 to position us to deliver sustainable, profitable growth. We took steps to exit our Value business with the divestiture of maurices, and we are extremely pleased with the progress we have made on the wind-down of dressbarn. We are on track to complete these four closures by calendar year-end. The exit of our Value segment will enable greater focus on our remaining brands where we see the biggest potential to drive profitability. While the changes we made in the back half of fiscal 2019 have been difficult, they were the right decisions for the long-term health of the business. Beyond these accomplishments, we were also very pleased to have exceeded our guidance and with the continued progress we made on our transformation plan in the fourth quarter. Gary and Dan will provide details in their remarks.

Our Board and our executive management team continued to assess the portfolio as we remain committed to enhancing shareholder value by returning to sustainable growth, improving our operating margins and optimizing our capital structure.