Ascena posts larger Q3 loss

For its third quarter to May 4, 2019, Ascena Retail Group, Inc. reported a GAAP loss of 1.20 dollars per diluted share compared to 20 cents in the year-ago period. The company said adjusted loss for the quarter was 26 cents per diluted share compared to 8 cents per diluted share in the year-ago period. Net sales were 1,266 million dollars compared to 1,267 million dollars in the year-ago period, while comparable and non-comparable sales remained flat for the quarter.

Commenting on the company’s third quarter, Gary Muto, Chief Executive Officer of Ascena Retail Group, said in a statement: "Third quarter results were better than anticipated, driven by stronger comps. With the elimination of our Value Fashion segment, we are already re-aligning our financial and human capital to support the areas of the business with the greatest growth potential."

The company’s gross margin decreased to 722 million dollars or 57.1 percent of sales compared to 753 million dollars or 59.5 percent of sales in the year-ago period.

The company added that for the fourth quarter of fiscal 2019, it expects net sales of 1.175 to 1.215 billion dollars; comparable sales to be down 5 percent to down 3 percent; gross margin rate of 55 percent to 55.5 percent; and operating loss of 15 million dollars to operating income of 5 million dollars.

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