Home / Knowledge / News / Apparel/Garments / Ascena's net income up 50%; raises 2012 earnings guidance
Ascena's net income up 50%; raises 2012 earnings guidance
02
Mar '12
Ascena Retail Group Inc. reported record financial results for its fiscal second quarter and six months ended January 28, 2012.

Net income for the second quarter of Fiscal 2012 increased by 50% to $63.7 million, compared to net income of $42.5 million for the second quarter of Fiscal 2011. Earnings per share for the second quarter of Fiscal 2012 increased by 56% to $0.81 per diluted share, compared to $0.52 of earnings per diluted share for the second quarter of Fiscal 2011.

Net sales for the second quarter of Fiscal 2012 increased 15% to $862.0 million, compared to $752.1 million for last year's second quarter. This was primarily due to an 8% increase in comparable store sales, strong growth in sales from new stores and e-commerce, and a $6 million increase in revenues relating to gift card breakage. Consolidated comparable store sales include stores open for at least one year and do not include e-commerce sales results. E-commerce sales increased 61% to $52 million versus last year's comparable period.

Selling, general and administrative (“SG&A”) expenses for the second quarter of Fiscal 2012 were $232.3 million, or 26.9% of sales, compared to $211.1 million, or 28.1% of sales last year. The 120 basis point improvement in SG&A expenses as a percent of sales was primarily due to leverage on higher sales.

Operating income for the second quarter of Fiscal 2012 increased 40% to $100.0 million, or 11.6% of sales, compared to $71.5 million, or 9.5% of sales last year. The 210 basis point increase in operating income as a percent of sales was due to higher sales and the ability to leverage both buying and occupancy costs and SG&A expenses.

Net income for the first six-month period of Fiscal 2012 increased by 23% to $111.2 million, compared to net income of $90.5 million for the first six months of Fiscal 2011. Earnings per share for the first six-month period of Fiscal 2012 increased by 26% to $1.41 per diluted share, compared to $1.12 of earnings per diluted share for the first six months of Fiscal 2011.

Net sales for the first six-month period of Fiscal 2012 increased 11% to $1.630 billion, compared to $1.465 billion for last year's first six months. The overall increase was primarily due to a 6% comparable store sales increase, and strong growth in sales from new stores and e-commerce.E-commerce sales increased 56% to $84 million versus last year.

SG&A expenses for the first six-month period of Fiscal 2012 were $456.5 million, or 28.0% of sales, compared to $415.2 million, or 28.3% of sales last year. The decrease in SG&A expenses as a percent of sales was due to leverage on higher sales.

Operating income for the first six-month period of Fiscal 2012 increased 18% to $176.5 million, or 10.8% of sales, compared to $149.3 million, or 10.2% of sales last year. The 60 basis point increase in operating income as a percent of sales was largely due to higher sales and the ability to leverage both buying and occupancy costs and SG&A expenses.

Must ReadView All

Textiles | On 25th Mar 2017

GST to positively impact retail value chain: CBRE

The implementation of the Goods and Services Tax (GST) bill in India...

Textiles | On 25th Mar 2017

MEGlobal to build first ever US MEG plant

Monoethylene glycol (MEG) producer MEGlobal plans to construct a new...

Courtesy: Ulster Carpet

Textiles | On 25th Mar 2017

Ulster Carpets acquires Griffith Textile Machines

Northern Ireland based manufacturer of carpets, Ulster Carpets said...

Interviews View All

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search