;
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

Anthesis Group takes over key assets of Made-By

Apparel/Garments | On 20th Jan 2019

Anthesis Group takes over key assets of Made-By

Anthesis Group, the global sustainability and solutions provider, has ...

ZDHC signatory brands share tools on screened chemistry

Apparel/Garments | On 20th Jan 2019

ZDHC signatory brands share tools on screened chemistry

ZDHC signatory brands - Levi Strauss & Co, Nike, H&M and C&A – are...

Courtesy: Global fashion agenda

Apparel/Garments | On 20th Jan 2019

ASOS, PVH become partners to Global Fashion Agenda

ASOS and PVH Corp are becoming part of the Global Fashion Agenda’s...

Interviews View All

Anvita Mehra, Confidential Couture

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Frank Gossmann, Rotorcraft AG

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Top executives, Textile industry

Top executives
Textile industry

Sri Lanka has a good sustainable track record and strong stories to back it

Urmil Arya,

Urmil Arya

Sushila International, a well established textile organisation established ...

Paolo Crespi,

Paolo Crespi

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

Maya Simova,

Maya Simova

Inter Expo and Congress Center (IEC) is a prominent exhibition centre in...

Mr Hartmann Huth, Trevira GmbH

Mr Hartmann Huth
Trevira GmbH

Trevira GmbH is an innovative European manufacturer of high-value branded...

Alfonso Marra, Klopman

Alfonso Marra
Klopman

It was in 1968 that Klopman introduced the concept of poly/cotton workwear ...

Paige Mullis, Glen Raven Inc

Paige Mullis
Glen Raven Inc

Paige Mullis discusses the expansion plans of Glen Raven Inc in India, and ...

Prathyusha Garimella, Prathyusha Garimella

Prathyusha Garimella
Prathyusha Garimella

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

Chandani Sahi, By Chandani

Chandani Sahi
By Chandani

By Chandani is a womenswear prêt couture brand with fusion silhouettes by...

Nisha Chanda, Whistling Woods International School of Fashion

Nisha Chanda
Whistling Woods International School of Fashion

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

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


January 2019

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

news category


Related Categories:

Advanced Search