Ascena Retail Group Meets on the Top Line, Misses Where It Counts
Ascena Retail Group (NAS: ASNA) reported earnings on May 31. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 28 (Q3), Ascena Retail Group met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share contracted.
Margins contracted across the board.
Ascena Retail Group logged revenue of $783.3 million. The eight analysts polled by S&P Capital IQ expected sales of $785.1 million on the same basis. GAAP reported sales were 8.4% higher than the prior-year quarter's $722.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.34. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.36 per share. GAAP EPS of $0.31 for Q3 were 3.1% lower than the prior-year quarter's $0.32 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 43.4%, 100 basis points worse than the prior-year quarter. Operating margin was 10.9%, 110 basis points worse than the prior-year quarter. Net margin was 6.3%, 90 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $785.1 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $3.21 billion. The average EPS estimate is $1.40.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 235 members out of 264 rating the stock outperform, and 29 members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 72 give Ascena Retail Group a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ascena Retail Group is outperform, with an average price target of $23.94.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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