Home / Knowledge / News / Apparel/Garments / Q4FY14 earnings from continuing operation plunge at Ascena
Q4FY14 earnings from continuing operation plunge at Ascena
26
Sep '14
Earnings from continuing operations nosedived at NASDAQ-listed and apparel retailer and marketer - Ascena Retail Group, Inc. in the fourth fiscal quarter ended July 26, 2014.

In the fourth fiscal quarter of 2014, earnings from continuing operations plunged to $0.10 per diluted share from $0.23 per diluted share in the fourth fiscal quarter of 2013.

Commenting on its earnings, Ascena said, “Despite mixed results across our portfolio and continuing soft traffic patterns, fourth quarter EPS was in line with our expectations.”

Net sales for the fourth fiscal quarter of 2014 fell 1.3% to $1.182 billion, compared to $1.198 billion from the comparable period of previous fiscal year.

“This decrease was caused by challenging tween market conditions at Justice and inventory-related issues at Lane Bryant”, Ascena explained.

Gross profit for the fourth fiscal quarter of 2014 declined to $647.2 million, or 54.7% of sales against $654.2 million, or 54.6% of fourth quarter sales last fiscal year.

Buying, distribution and occupancy (BD&O) costs for the quarter under review rose to $206.5 million, or 17.5% of sales, compared to $197.1 million, or 16.5% of fourth quarter sales last year.

Ascena attributed the increase to investments in merchandising and design functions, as well as the impact of new store growth at Justice and maurices.

Selling, general and administrative (SG&A) expenses for the fourth fiscal quarter of 2014 amounted to $343.5 million, or 29.1% of sales versus $330.8 million, or 27.6% of fourth quarter sales last year.

“The increase in total expense was primarily related to store payroll growth on a higher unit base, headcount growth at the brands to support our direct channel”, the apparel retailer informed.

Fourth fiscal quarter of 2014 operating income reached $22.5 million, or 1.9% of sales, compared to $58.3 million, or 4.9% of sales in the prior year same quarter.

“We have yet to see sustained evidence of market improvement, and as a result, are maintaining a conservative outlook as we enter the Fall season,”, Ascena said.

CEO David Jaffe said, “We continue to focus on controlling what we can control - refining our merchandising execution, maintaining focus on inventory levels and expense management”.

“Fiscal 2015 will see the continuation of a critical, multi-year investment to build out our omnichannel platform. We continue to create a business model that will drive sustainable long term value for our shareholders.”

Ascena Retail Group, Inc. operates through its subsidiaries approximately 3,900 stores throughout the United States and Canada. (AR)

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: Aditya Birla

Textiles | On 20th Jun 2018

'Growth of VSF yarn industry is difficult'

Growth for the viscose filament yarn (VSF) yarn industry is...

Comfort USP of Sensitive Fabrics range of Eurojersey Spa

Apparel/Garments | On 20th Jun 2018

Comfort USP of Sensitive Fabrics range of Eurojersey Spa

Italian company Eurojersey Spa will present in 2019 new embossing...

Certification for Philippine garment firms availing GSP

Textiles | On 20th Jun 2018

Certification for Philippine garment firms availing GSP

The Philippines has adopted rules on securing certificate of...

Interviews View All

Top executives
Textile industry, India

The event should be organised every year

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Carolin Russ

Weko, Weitmann & Konrad GmbH & Co KG, based in south Germany, is...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

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

Leave your Comments


June 2018

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

news category


Related Categories:

Advanced Search