Home / Knowledge / News / Apparel/Garments / Q2 income from continuing operations nosedives at Ascena
Q2 income from continuing operations nosedives at Ascena
09
Mar '15
Income from continuing operations for the second quarter of fiscal 2015 ended January 24, 2015 at garment marketer, Ascena Retail Group, Inc. nosedived when compared with the year ago quarter.

“Income from continuing operations for the second quarter of fiscal 2015 was knocked down to $8.7 million as against $32.4 million in the prior year’s second quarter,” Ascena said in a press release.

On an adjusted basis, income from continuing operations for the reporting quarter was also down massively to $12.2 million, as compared to $38.6 million in the same quarter of fiscal 2014.

The apparel marketer reported earnings for the second quarter of fiscal 2015 from continuing operations of $0.05 per diluted share, down from $0.19 per diluted share in the year earlier quarter.

Net sales for the quarter under review rose marginally by 1.7 per cent to $1.289 billion as against $1.267 billion in the second quarter of fiscal 2014.

Ascena attributed the same to new store growth at Justice and maurices and positive combined comparable sales at Lane Bryant, maurices, dressbarn and Catherines.

Gross margin in the reporting quarter stood at $662 million or 51.4 per cent of sales, flat when expressed in terms of dollars but down from the prior year rate of 52.3 per cent of sales.

“The decrease in the gross margin rate was caused by significantly higher markdowns at Justice to clear seasonal inventory,” the marketer said.

“Excluding Justice, we saw gross margin rate improvement across all of our other brands, with the largest increase coming at dressbarn,” it added.

Buying, distribution and occupancy (“BD&O”) expenses for the second quarter of fiscal 2015 were $216.4 million or 16.8 per cent of sales from $210.5 million or 16.6 per cent of sales in the second quarter of last fiscal.

“The expense increase primarily reflects the impact of new store growth at Justice and maurices, along with increased merchandising and design capability at maurices and dressbarn,” it explained.

Operating income for the second quarter of fiscal 2015 fell steeply to $16.6 million or 1.3 per cent of sales, compared to $49.0 million or 3.9 per cent of sales from the fiscal 2014 second quarter.

On an adjusted basis, operating income was $22.0 million or 1.7 per cent of sales as against $59.0 million, or 4.7 per cent of second quarter sales last fiscal.

The effective tax rate too rose massively to 42.0 per cent for the three months ended January 24, 2015 from 30.9 per cent for the three months ended January 25, 2014. (AR)

Fibre2fashion News Desk - India


Must ReadView All

Ethiopia’s Kombolcha Industrial Park attracts foreign firms

Apparel/Garments | On 15th Dec 2017

Ethiopia’s Kombolcha Industrial Park attracts foreign firms

Strategic location, modern factory facilities and proximity to the...

Courtesy: 2XU

Apparel/Garments | On 15th Dec 2017

L Catterton Asia announces JV of GXG and 2XU

L Catterton Asia, the Asian unit of the largest and most global...

15 trade associations urge nations to safeguard WTO system

Apparel/Garments | On 15th Dec 2017

15 trade associations urge nations to safeguard WTO system

Fifteen trade and industry associations from across the world have...

Interviews View All

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

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

Top executives
Textile industry

The foremost issue is bridging the skill gap

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

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

December 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search