Home / Knowledge / News / Apparel/Garments / Sales at Ascena Retail grow 4% in Q4FY18

Sales at Ascena Retail grow 4% in Q4FY18

26
Sep '18
Courtesy: Ascena Retail
Courtesy: Ascena Retail
The net sales of Ascena Retail group for the fourth quarter of fiscal 2018 has been recorded at $1,766 million compared to $1,658 million in the year-ago period, with a 4 per cent increase in comparable sales. The company reported Gaap income of $0.17 per diluted share compared to a Gaap loss of $0.08 per diluted share in the year-ago period.

Gross margin of the US-based company increased to $1,015 million, or 57.5 per cent of sales, for the fourth quarter of fiscal 2018 compared to $951 million, or 57.4 per cent of sales in the year-ago period. Gross margin rate increased 10 basis points, with strong rate improvement at our Premium Fashion and Kids Fashion segments mostly offset by declines at Plus Fashion and Value Fashion segments. In the Plus Fashion segment, merchandise margin increased from the year-ago period, reflecting improving assortment performance and disciplined inventory management, with the offset caused primarily by higher freight expense resulting from increased digital penetration. The decline in Value Fashion segment was caused primarily by lower clearance price points at dressbarn.

"We continue to make good progress across the three pillars of our Change for Growth transformation programme. We remain on track to achieve $300 million in annual run rate savings by July 2019, and are currently implementing the two remaining large capability-building components of our transformation program - localised planning and our customer experience management ecosystem. And as we enter fiscal 2019, we are leveraging the foundation we’ve built over the past two years to pivot the organization toward the most critical pillar of our transformation programme - reinvigorating growth from our core," David Jaffe, chief executive officer, said.

"We remain committed to realising the full value of our brand portfolio and platform capability. At the core of future shareholder value creation is the promise of a highly differentiated and growing group of leading brands, supported by a cost efficient infrastructure. We entered fiscal 2019 with good base momentum, and key growth initiatives beginning to gain traction across our brands. We are making headway with stabilisation of our dressbarn brand, and will continue to explore opportunities across our brand portfolio to create shareholder value," Jaffe concluded.

Operating income for the fourth quarter of fiscal 2018 was $53 million compared to an operating loss of $9 million in the year-ago period. The increase in the current year primarily reflects the impact of the additional week, which generated approximately $30 million, lower costs associated with the Change for Growth transformation programme as well as lower acquisition-related costs.

The company ended the fourth quarter with total debt of $1,372 million, which represents the balance remaining on the term loan. There were no borrowings outstanding under the company's revolving credit facility at the end of the fourth quarter. In addition, the company had $473 million of borrowing availability under its revolving credit facility. During the reported period, the company repaid $203 million of its term loan and its next scheduled repayment is in November of calendar year 2020.

For fiscal 2019, net sales are expected to be between $6.45 to $6.55 billion and comparable sales to be up in low single digit. The gross margin rate is likely to be around 57.6 to 58.1 per cent and operating expense growth is forecast at 1 per cent. (RR)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Shutterstock

Retail | On 9th Jul 2020

UK unveils 2nd part of 3-phase plan for economic recovery

Chancellor of the exchequer Rishi Sunak recently announced a slew of...

Pic: lentamart / Shutterstock.com

Apparel/Garments | On 9th Jul 2020

Brooks Brothers files Chapter 11 bankruptcy proceedings

Brooks Brothers, America's oldest apparel company, recently announced ...

Pic: Sorbis / Shutterstock.com

Apparel/Garments | On 9th Jul 2020

Bangladesh apparel exports down 18.12% in FY20

Readymade garment exports from Bangladesh decreased by 18.12 per cent ...

Interviews View All

Siddharth Biyani, Mangalam Industries Pvt Ltd

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Victor Chao, Esmetex

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Saket Garg, Garg Corporation

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Christiane Thies,

Christiane Thies

Founded in 1892, Thies has concentrated on the fabrication of high-quality ...

Sham Shah,

Sham Shah

Shamal and Shamal Pvt Ltd is into manufacturing and sales of textile...

Ravi Kant Prakash,

Ravi Kant Prakash

A crucial role in the process of fabric manufacturing is played by the...

Mark Brill, Birmingham City University (BCU)

Mark Brill
Birmingham City University (BCU)

<div>A technological breakthrough could see people getting messages about...

Urs Stalder, Sanitized AG

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Lynda Kelly, Suominen Corporation

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Samar Firdos, Arvind Ltd

Samar Firdos
Arvind Ltd

<b>Samar Firdos</b>, Chief Manager (Design) at Lifestyle Apparel Denim...

Wendell Rodricks, Wendell Rodricks

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

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


July 2020

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


Advanced Search