ascena retail group inc (ASNA) Snapshot

Ascena Retail Group Inc. reported unaudited consolidated financial results for the third quarter and nine months ended April 27, 2013. For the third quarter of Fiscal 2013, earnings from continuing operations were $0.20 per diluted share, while losses from discontinued operations were $0.01 per diluted share. This compares to earnings from continuing operations of $0.31 per diluted share in the same period of Fiscal 2012. Adjusted earnings from continuing operations in the third quarter of Fiscal 2013 were $0.26 per diluted share, compared to $0.34 per diluted share in the prior year's third quarter. Net sales for the third quarter of Fiscal 2013 increased 46% to $1.142 billion, compared to $783 million in the prior year's third quarter. This growth was driven by the inclusion of the recently acquired Lane Bryant and Catherines businesses, slightly offset by a total comparable sales decrease of 1% for the quarter versus the prior year. Store comp sales for the quarter declined 4% and e-commerce comp sales increased 37%. Operating income for the third quarter of Fiscal 2013 was $65.8 million, or 5.8% of sales, compared to $85.3 million, or 10.9% of sales last year. On an adjusted basis, operating income for Fiscal 2013 was $72.7 million, or 6.4% of sales. The decrease in adjusted operating income as a percent of sales was primarily due, to increased promotion and markdown activity, increased BD&O expenses and duplicative overhead expenses from the Charming Acquisition. Income from continuing operations for the third quarter of Fiscal 2013 was $32.9 million as compared to $49.4 million in the prior year's third quarter. Adjusted income from continuing operations for the third quarter of Fiscal 2013 was $42.2 million, as compared to $53.7 million in the prior year's third quarter. Income from continuing operations before income taxes was $55.1 million, compared to $79.1 million for the last year. Net income was $31.2 million or $0.19 per diluted share, compared to $49.4 million or $0.31 per diluted share for the last year. CapEx for the quarter was approximately $75 million. For the nine months, the company's net sales were $3,517.2 million, compared to $2,413.6 million for the last year. Operating income was $207.0 million, compared to $261.8 million for the last year. Income from continuing operations before income taxes was $185.8 million, compared to $257.0 million for the last year. Income from continuing operations was $116.9 million, compared to $160.6 million for the last year. Net income was $121.5 million or $0.75 per diluted share, compared to $160.6 million or $1.01 per diluted share for the last year. The company has revised its guidance for adjusted earnings per diluted share from continuing operations for the fiscal year ending July 2013 to a range of $1.10 to $1.15. This guidance excludes any one-time, finance-related and acquisition-related integration, restructuring and purchase accounting costs that have been, and may continue to be, incurred during the fiscal year. The company noted that its guidance is based upon various assumptions, including flat to up low single digits total comparable sales for the remainder of its fiscal 2013 fourth quarter, and between 50 and 60 net new store openings during the Spring Season. CapEx is projected at $350 million.

In terms of unit development, Ascena Retail Group Inc. expects to finish the year with approximately 200 openings and expects to close approximately 160 stores.

Ascena Retail Group Inc., Q3 2013 Earnings Call, Jun 05, 2013