** charts before earnings **
** charts after earnings **
Ascena Retail Group misses by $0.08, beats on revs; guides FY17 EPS and revenue below consensus:
- Reports Q4 (Jul) earnings of $0.08 per share, excluding non-recurring items,$0.08 worse than the Capital IQ Consensus of $0.16; revenues rose 54.9% year/year to $1.81 bln vs the $1.77 bln Capital IQ Consensus.
- Comps down 4%.
- -4% at Justice, +1% Lane Bryant, -9% maurices, -7% dressbarn, -5% Catherines.
- Co issues downside guidance for FY17, sees EPS of $0.60-0.65, excluding non-recurring items, vs. $0.83 Capital IQ Consensus Estimate; sees FY17 revs of $6.9-7.0 bln vs. $7.13 bln Capital IQ Consensus; comps down 1-2%..
- "Fiscal 2016 was a challenging year for ascena, characterized by a highly competitive selling environment and significant store traffic headwinds. While we are seeing good customer demand during peak periods, off-peak demand has been inconsistent, and fourth quarter financial performance fell well below our expectations... The Justice team delivered full-year operating margin in the middle of the guidance range we provided last September. Second, our integration of ANN continues to progress well, and we remain ahead of plan with our synergy and cost savings workstreams. Third, the new ascena omni-channel platform went live at Justice in the fourth quarter, and the early reads on demand growth have significantly exceeded our expectations. And finally, we continue to make progress with our enterprise transformation work, and we are currently moving forward to address identified opportunities."
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