Home / Knowledge / News / Apparel/Garments / Ascena's net income up 50%; raises 2012 earnings guidance

Ascena's net income up 50%; raises 2012 earnings guidance

02
Mar '12
Ascena Retail Group Inc. reported record financial results for its fiscal second quarter and six months ended January 28, 2012.

Net income for the second quarter of Fiscal 2012 increased by 50% to $63.7 million, compared to net income of $42.5 million for the second quarter of Fiscal 2011. Earnings per share for the second quarter of Fiscal 2012 increased by 56% to $0.81 per diluted share, compared to $0.52 of earnings per diluted share for the second quarter of Fiscal 2011.

Net sales for the second quarter of Fiscal 2012 increased 15% to $862.0 million, compared to $752.1 million for last year's second quarter. This was primarily due to an 8% increase in comparable store sales, strong growth in sales from new stores and e-commerce, and a $6 million increase in revenues relating to gift card breakage. Consolidated comparable store sales include stores open for at least one year and do not include e-commerce sales results. E-commerce sales increased 61% to $52 million versus last year's comparable period.

Selling, general and administrative (“SG&A”) expenses for the second quarter of Fiscal 2012 were $232.3 million, or 26.9% of sales, compared to $211.1 million, or 28.1% of sales last year. The 120 basis point improvement in SG&A expenses as a percent of sales was primarily due to leverage on higher sales.

Operating income for the second quarter of Fiscal 2012 increased 40% to $100.0 million, or 11.6% of sales, compared to $71.5 million, or 9.5% of sales last year. The 210 basis point increase in operating income as a percent of sales was due to higher sales and the ability to leverage both buying and occupancy costs and SG&A expenses.

Net income for the first six-month period of Fiscal 2012 increased by 23% to $111.2 million, compared to net income of $90.5 million for the first six months of Fiscal 2011. Earnings per share for the first six-month period of Fiscal 2012 increased by 26% to $1.41 per diluted share, compared to $1.12 of earnings per diluted share for the first six months of Fiscal 2011.

Net sales for the first six-month period of Fiscal 2012 increased 11% to $1.630 billion, compared to $1.465 billion for last year's first six months. The overall increase was primarily due to a 6% comparable store sales increase, and strong growth in sales from new stores and e-commerce.E-commerce sales increased 56% to $84 million versus last year.

SG&A expenses for the first six-month period of Fiscal 2012 were $456.5 million, or 28.0% of sales, compared to $415.2 million, or 28.3% of sales last year. The decrease in SG&A expenses as a percent of sales was due to leverage on higher sales.

Operating income for the first six-month period of Fiscal 2012 increased 18% to $176.5 million, or 10.8% of sales, compared to $149.3 million, or 10.2% of sales last year. The 60 basis point increase in operating income as a percent of sales was largely due to higher sales and the ability to leverage both buying and occupancy costs and SG&A expenses.


Must ReadView All

Pic: Shutterstock

Textiles | On 17th Feb 2020

Vietnam textile firms urged to source from Malaysia, India

Pham Xuan Hong, president of Ho Chi Minh City’s textile association,...

Pic: Shutterstock

Textiles | On 17th Feb 2020

Myanmar to initiate measures to improve trade strategies

Myanmar will take measures to raise overseas demand for indigenous...

Pic: PaCT

Apparel/Garments | On 17th Feb 2020

IFC portal to monitor resource usage in Bangla RMG sector

The International Finance Corporation (IFC) has developed PaCT...

Interviews View All

Nuno Venda, ROQ

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Karan Toshniwal, Orange O Tec

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Rahul Bhadani, Looksgud

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Apurva Kothari,

Apurva Kothari

No Nasties was the first fashion brand in India to make 100 per cent...

Harsh Shah,

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Francesca Polato,

Francesca Polato

Berto Industria Tessile was founded in Bovolenta, a small town in the...

Paolo Ocleppo, Sandvik Hyperion

Paolo Ocleppo
Sandvik Hyperion

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

Marcel Alberts, Eurofibers

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Mr Ambrose Chan, DSG International (Thailand) PLC

Mr Ambrose Chan
DSG International (Thailand) PLC

Robert Brunner, Devereux

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Vaanee Bhatia, Gritstones Clothing

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Anisha Chaudhari, Threads & Shirts

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

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


February 2020

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


Advanced Search