Ascena Retail Group (NASDAQ: ASNA) 3Q19 Results: Mixed Results, Comps Beat Consensus for Most Brands

Executive Summary

• Ascena Retail Group reported fiscal 3Q19 revenues of $1.27 billion, below the consensus estimate of $1.43 billion, and down 0.1% year over year. The company reported adjusted 3Q19 earnings per share (EPS) of $0.26, higher than the consensus estimate of $(0.36) but lower than the year-ago period.
• Ascena’s third quarter comparable sales were flat, above the consensus estimate of (2.8)%.
• Due to the the closure of the company’s Dressbarn business, for 4Q19, the company provided guidance only for the continuing operations of its premium fashion brands, plus fashion brands and kids segments; it projects net sales of $1.175 billion to $1.215 billion. Management expects comparable sales of (5)% to (3)%.