Home / Knowledge / News / Apparel/Garments / Ascena Retail Group sales down 8% in Q3 FY17
Ascena Retail Group sales down 8% in Q3 FY17
May '17
The comparable sales for the third quarter of fiscal 2017 of apparel marketer Ascena Retail Group have lowered to 8 per cent as against the corresponding period of the previous year. Further, the company expects 6-7 per cent reduction in the sales for 2017. The decrease in the company’s forecasted earnings represent impairment indicators.

"Industry-wide traffic headwinds and a highly elevated promotional environment have persisted at levels significantly above our expectations, resulting in a miss to our third quarter sales and earnings outlook. We have adjusted our second-half outlook to reflect this environment and limited near term visibility, and no longer believe it appropriate to expect a stabilisation of traffic and resulting normalisation of comp sales against softer demand in the year-ago period," David Jaffe, president and CEO said.

"The specialty retail sector is in a period of unprecedented secular change that is disruptive to traditional business models, and we believe operating conditions in our sector are likely to remain challenging for the next 12 to 24 months. After several years of meaningful investment, Ascena has developed a highly capable supply chain and distribution network designed to address the fundamental changes in our sector. We are confident that our comprehensive enterprise transformation, our financial strength, and our highly capable operational platform will enable us to navigate this period of adjustment, and emerge in a position to compete effectively on a sustained basis as a true omni-channel retailer, supported by our mix of relevant owned brands and deep customer relationships," added Jaffe.

"Implementation of our change for growth enterprise transformation programme is well underway, and we are aggressively accelerating and amplifying our transformation to ensure we emerge from this period of industry disruption as a stronger, more agile company. We are in process with implementation of technology platforms to support sales and margin, and have begun execution of our fleet optimisation programme. These initiatives, along with an expanded structural cost reduction scope, are now expected to deliver $250 to $300 million in cost savings as compared to our prior $150 million target. We plan to provide a timeline and additional context regarding this increased target on our third quarter earnings call, scheduled for 5 June," Jaffe concluded. (RR)

Fibre2Fashion News Desk – India

Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 26th Nov 2020

Bangladesh wants duty-free entry of 42 products into Nepal

Bangladesh has sought duty-free entry of 42 products, including...

Pic: Shutterstock

Textiles | On 26th Nov 2020

Curbs on exports to China may cripple Oz wool industry

The Australian wool industry may witness a crippling effect of...

Pic: Shutterstock

Retail | On 26th Nov 2020

BRC hails UK govt decision to open all retail after Dec 2

In response to Prime Minister Boris Johnson's announcement that all...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Union budget 2018-19 will have positive impact on apparel industry

Rajiv Sirohi, Shara

Rajiv Sirohi

‘Portugal is taking away a major share of the mill made sector.’

Headhonchos, Indian fashion industry

Indian fashion industry

Organic the first choice of any environment-conscious person

Abhishek Dhanuka,

Abhishek Dhanuka

Vyom International Pvt Ltd, established in 2002, is one of Surat's leading ...

Henk-Jan Rohaan,

Henk-Jan Rohaan

The custom-built machineries of Brugman Holland are known for reliability, ...

Franco Ravazzi,

Franco Ravazzi

Italy-based Tessimenti E Orditi Tinti (T.O.T SRL) specialises in stocking...

Karan Bose, Hula Global

Karan Bose
Hula Global

Hula Global, a leading isolation gown manufacturer in India, has been...

Sanjay Raut, Garware Technical Fibres Ltd

Sanjay Raut
Garware Technical Fibres Ltd

Garware Technical Fibres Ltd (formerly Garware-Wall Ropes Ltd) is a...

Kevin Young & Tom Lucas, Web Industries

Kevin Young & Tom Lucas
Web Industries

Web Industries is a precision formatter of nonwoven materials used in baby ...

Yash P. Kotak, Bombay Hemp Company

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Bani Batra,

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Aneeth Arora, Péro

Aneeth Arora

The Woolmark Company has partnered with handmade fashion label Péro and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

November 2020

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

Advanced Search