Ascena Retail Group
The 10-second takeaway
For the quarter ended April 28 (Q3), Ascena Retail Group met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share contracted.
Margins contracted across the board.
Ascena Retail Group logged revenue of $783.3 million. The eight analysts polled by S&P Capital IQ expected sales of $785.1 million on the same basis. GAAP reported sales were 8.4% higher than the prior-year quarter's $722.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.34. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.36 per share. GAAP EPS of $0.31 for Q3 were 3.1% lower than the prior-year quarter's $0.32 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 43.4%, 100 basis points worse than the prior-year quarter. Operating margin was 10.9%, 110 basis points worse than the prior-year quarter. Net margin was 6.3%, 90 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $785.1 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $3.21 billion. The average EPS estimate is $1.40.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 235 members out of 264 rating the stock outperform, and 29 members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 72 give Ascena Retail Group a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ascena Retail Group is outperform, with an average price target of $23.94.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.