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

Courtesy: ITMA 2015

Textiles | On 21st Jun 2018

Italy to host textile machinery fair ITMA in 2023

ITMA, the trendsetting textile and garment technology platform, will...

Courtesy: Connor Group

Textiles | On 21st Jun 2018

Protectionism top threat to textile sourcing: William Connor

Protectionism is the biggest political factor and threat affecting...

NRF urges US Congress to step in, stop trade war

Apparel/Garments | On 21st Jun 2018

NRF urges US Congress to step in, stop trade war

The National Retail Federation (NRF) recently urged the US Congress...

Interviews View All

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Paolo Crespi

For.Tex is an Italy-based leading producer of dyes and thickeners, and is...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Suresh Patel
Sidwin Fabric

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

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

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