Ascena Retail (ASNA) Updates Guidance and Cost-Savings Plan

Executive Summary

• scena Retail updated guidance in advance of its 3Q17 earnings call and provided an update on its Change for Growth enterprise transformation program. The company cited a highly promotional environment and industrywide headwinds resulting in a reduction of its 3Q sales and earnings outlook.
• The company lowered its sales guidance for 3Q to (8)%, from prior guidance for a range of (5)% to (4)%, and lowered its full fiscal year comparable sales guidance down to a range of (7)% to (6)%, from previous guidance for a range of (4)% to (3)%.
• Ascena Retail also lowered its 3Q EPS guidance to $0.04–$0.06, from $0.07–$0.12, and its full fiscal year 2017 EPS guidance to $0.10–$0.15 from $0.37–$0.42 previously.