Home / Knowledge / News / Apparel/Garments / Ascena registers sales of $1,503.3 million in Q3FY18
Ascena registers sales of $1,503.3 million in Q3FY18
10
Jun '18
Courtesy: Ascena Retail
Courtesy: Ascena Retail
Ascena Retail Group has registered net sales of $1,503.3 million for the third quarter of fiscal 2018, compared to 1,565.1 million in the year-ago period, with the decline caused primarily by a 3 per cent decline in comparable sales. Gross margin declined to $883 million for the reported period, compared to $948 million in the year-ago period.

Selling, general, and administrative (SG&A) expenses for the third quarter of fiscal 2018 declined 3 per cent to $491 million, or 32.6 per cent of sales, compared to $506 million, or 32.3 per cent of sales in the year-ago period. The decline in SG&A expenses was primarily due to approximately $30 million in synergies and cost reduction initiatives, mainly reflecting headcount and non-merchandise procurement savings, lower store expenses resulting from our fleet optimisation programme, and lower performance-based compensation.

For the three months ended April 28, 2018, the company recorded a tax benefit of $11 million on pre-tax loss of $52 million. The effective tax rate for the quarter of 21.9 per cent primarily reflects the federal and state statutory rate as well as the impact of permanent and discrete items, including the impact of the 2017 Act.

The company ended the third quarter of fiscal 2018 with cash and cash equivalents of $363 million. Of this amount, approximately $279 million was held outside of the U.S. Subsequent to the end of the third quarter of fiscal 2018, the company repatriated approximately $225 million of its foreign cash back to the US, of which $112.5 million was used to prepay required term loan payments through October of 2019.

"Our third quarter results reflected a soft start in February, with sequential improvement over the combined March / April period. Another strong quarter at Justice was offset by continued challenges at our Value segment, particularly at dressbarn. We realized an 8 cent loss per share on an adjusted basis for the quarter, which is certainly not at a level that we consider acceptable, or representative of the company’s earnings potential. Our transformation program delivered significant expense reductions, and we were pleased to see improved comp sales performance exiting the third quarter. This momentum has continued into our fourth quarter with quarter-to-date comp sales up mid-single digits," David Jaffe, chief executive officer, said.

"Looking forward, we will continue to drive our enterprise transformation to realize the full value of our brand portfolio, and we are working to quickly stabilize performance at our Value segment. Our brands are focused on delivering compelling fashion offerings and a differentiated experience to our customers, and we expect to leverage our leaner cost structure and our growing competitive capabilities to support sustained, profitable comp growth. In parallel, we continue to evaluate opportunities across our brand portfolio to create shareholder value," Jaffe concluded.

The company expects net sales in the range of $1.62 to $1.66 billion in the fourth quarter of fiscal 2018. The gross margin rate is likely to be in the range of 56.5 to 57.0 per cent. The operating income is predicted to be around $22 to $42 million. (RR)

Fibre2Fashion News Desk – India


Must ReadView All

Courtesy: Ministry of Trade and Industry, Singapore

Textiles | On 14th Nov 2018

Vietnam ratifies trans-Pacific trade pact CPTPP

Vietnam’s 14th National Assembly recently adopted a resolution...

Courtesy: EU Chamber of Commerce

Textiles | On 14th Nov 2018

PRC promises unrealised: EU Chamber of Commerce in China

The European Union (EU) Chamber of Commerce in China has said the...

Zimbabwe’s firm sacks 200 as S Africa scraps trade pact

Apparel/Garments | On 14th Nov 2018

Zimbabwe’s firm sacks 200 as S Africa scraps trade pact

Zimbabwe’s apparel company Archer Clothing is witnessing fears of...

Interviews View All

Headhonchos, Indian fashion industry

Headhonchos
Indian fashion industry

Organic the first choice of any environment-conscious person

Top executives, Textile & apparel bodies

Top executives
Textile & apparel bodies

The decision to reduce GST on MMF yarn to 12% is transformational

Representatives, Textile & apparel industry

Representatives
Textile & apparel industry

GST is a complicated and lengthy process

Sugandha Bhardwaj,

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Abhishek Pachauri,

Abhishek Pachauri

Reckon Industries is into manufacturing of textile process house machines, ...

Abhishek Pachauri,

Abhishek Pachauri

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

Pierre Wiertz, EDANA

Pierre Wiertz
EDANA

Pierre Wiertz talks about the vast world of sustainable nonwovens and...

Steve Cole, Xerium Technologies

Steve Cole
Xerium Technologies

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

Chunyi Zhi, City University of Hong Kong

Chunyi Zhi
City University of Hong Kong

<div><b>Chunyi Zhi</b>, associate professor in the Department of Materials ...

Silvia Venturini Fendi, Fendi s.r.l

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Igor Chapurin, Chapurin

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Varsha Wadhwa, VW

Varsha Wadhwa
VW

Coming from a family that ran a business of jute and linen mills since...

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


November 2018

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

news category


Related Categories:

Advanced Search