Net earnings increase 96% at Ascena Retail

04 Mar '11

5 min read

For the six month period by division: net sales for dressbarn decreased 1% to $451.7 million with comparable store sales decreasing 1% as well. Net sales for maurices increased 20% to $385.3 million with comparable store sales increasing 13%. Net sales for Justice were $628.4 million with comparable store sales increasing 7% during this period.

Operating income for the six month period was $149.3 million, or 10.2% of sales, compared to $80.9 million, or 8.1% of sales in the prior six month period. On a non-GAAP basis, operating income increased to $158.9 million, or 10.8% of sales, compared to $90.2 million, or 9.0% of sales in the prior fiscal year. This increase as a percentage of sales is mainly due to improved gross profit.

David R. Jaffe, President and Chief Executive Officer of Ascena Retail Group, Inc., commented, "We are very pleased to have made continued gains across our portfolio of businesses during the second quarter. We are seeing growth, increased productivity at the store level and improved efficiency in our corporate functions. I am very pleased with our overall business performance and our ability to identify the right merchandise, plan assortments effectively, conduct compelling marketing activities and develop increased loyalty from our customers. As we move into the second half of our fiscal year, we are focused on continuing to deliver value to our customers, on sustaining our improvements in margin and on building a shared infrastructure platform to support each of our brands."

The Company is raising its adjusted earnings per diluted share guidance for its fiscal year ending July 2011 to the range of $2.28 to $2.33, up from its previous guidance of $2.20 to $2.25 as a result of the better than expected quarterly earnings results and favorable early spring sales trends. This estimate is also based upon various assumptions for the year including a mid-single digit increase in comparable store sales for the Spring Season. The Company plans to end fiscal 2011 with a total of approximately 2,500 dressbarn, maurices and Justice stores.

Ascena Retail Group, Inc. succeeded The Dress Barn, Inc. as a result of reorganization effective January 1, 2011. The Company is a leading national specialty retailer of apparel for women and tween girls operating under the dressbarn, maurices and Justice names. The Company operates 2,478 stores.

Ascena Retail Group Inc

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