Ascena Expects Two Quarter Earnings

Largest in North America

The group's Ascena Retail Group Inc. (NASDAQ:ASNA) Xun released its two quarter earnings on Tuesday, ending the 2016 quarter of fiscal two in January 23, 2016. The company recorded a loss of $0.12 per share. After adjustment, EPS recorded $0.01, which is better than the market expected -0.01 dollar. The 1 billion 841 million 800 thousand US dollar income is not inferior to that of Capital IQ Consensus expected $1 billion 880 million.

In addition, the company's expectations for the current three quarter EPS 0.10 US $-0.14 are also lower than the US $0.19 expected by the market, which is expected to stimulate Ascena Retail Group Inc. (NASDAQ:ASNA) to sell 4.52% dollars and 8.45 dollars behind schedule.

David Jaffe said that despite the volume of people in the holiday season,

Sustained pressure, but focus on inventory management, the group's gross margin has been greatly improved.

The gross profit margin of Ascena in the two quarter was 52%, an improvement of 60 basis points compared with the same period last year, a significant increase of 300 basis points to 53.3% on the basis of that.

During the period,

Operating losses of $16 million 800 thousand, net loss of $22 million 600 thousand.

Ascena reiterated that the earnings per share of US $0.75 -0.80 US dollars for the 2016 fiscal year ending July will be expected.

The closing price of Ascena Retail Group Inc. (NASDAQ:ASNA) on Tuesday ended at $8.85, up 4.73% on the whole day, and the stock has fallen 10% so far this year, and the decline in December has been as high as 34%.

The two quarter of January 23, 2016, which ended in the 2016 quarter of January 23, 2016, benefited from the acquisition of Ann Inc. Ascena, a 43% increase in Ascena revenue. However, in the two quarter, the group still had a 6% decrease compared with sales, of which 17% was comparable to that of sales, while 2% for Ann Inc..

Ascena president and CEO David Jaffe said the two quarter results were slightly better than those expected in January, mainly benefiting from the strong performance of LOFT and the gross margin improvement of Justice.