Fiscal Full Year Results
On a reported basis, net income for the fiscal year ended July 30, 2011 increased to a record $170.5 million, or $2.11 per diluted share, compared to net income of $133.4 million, or $1.73 per diluted share for Fiscal 2010.
On an adjusted basis, net income increased to a record $188.7 million, or $2.33 per diluted share, compared to net income for Fiscal 2010 of $136.1 million, or $1.77 per diluted share. The improved full year results in Fiscal 2011 primarily reflected strong growth in operating income at maurices and Justice, including a full year's effect of the merger, partially offset by lower operating performance at dressbarn. Adjusted results exclude the effect of the extra week in Fiscal 2010 and other items that management believes are not indicative of the Company's underlying operating performance. Reference should be made to the section "Use of Non-GAAP Financial Measures" elsewhere in this release.
Net sales for the fifty-two week fiscal year ended July 30, 2011 increased 23% to a record $2.91 billion, compared to $2.37 billion for the prior fifty-three week fiscal year ended July 31, 2010. The overall increase was primarily due to a full year's effect of the Justice merger, strong growth in e-commerce sales and across-the-board increases in comparable store sales. Consolidated comparable store sales increased 6% on a fifty-two week comparable basis for the year. By brand, comparable store sales increased by 2% at dressbarn, 10% at maurices and 8% at Justice.
On a reported basis, SG&A expenses for the fiscal year were $852.1 million, or 29.2% of sales, compared to $690.2 million, or 29.1% of sales in the prior year. On an adjusted basis, SG&A expenses were $833.3 million, or 28.6% of sales, compared to $662.0 million, or 28.6% of sales last year. SG&A as a percent of sales did not reflect leverage from the sales increase as a result of the costs associated with several key initiatives.
On a reported basis, operating income for fiscal 2011 was $289.8 million, or 9.9% of sales, compared to $217.5 million, or 9.2% of sales in the prior year. On an adjusted basis, operating income increased to $311.0 million, or 10.7% of sales, compared to $222.7 million, or 9.6% of sales in the prior fiscal year. The increase in both reported and adjusted operating income was largely due to the strong performance of maurices and Justice, the latter of which also included a full year's effect of the merger.
Commentary
David R. Jaffe, President and Chief Executive Officer of Ascena Retail Group, Inc., commented, "We are pleased to have reported a strong fiscal year and fourth quarter. Our results were achieved in a very tough environment and we remain positioned for growth both in sales and operating profitability. Our balance sheet and cash flow remain very strong and we have the resources to continue to pursue organic growth and to continue to search for complementary acquisitions.
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