Ascena Retail Group
The 10-second takeaway
For the quarter ended Oct. 27 (Q1), Ascena Retail Group met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share contracted.
Gross margins increased, operating margins shrank, net margins dropped.
Ascena Retail Group reported revenue of $1.14 billion. The eight analysts polled by S&P Capital IQ wanted to see net sales of $1.14 billion on the same basis. GAAP reported sales were 48% higher than the prior-year quarter's $768.3 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 $0.39. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.34 per share. GAAP EPS of $0.27 for Q1 were 10.0% lower than the prior-year quarter's $0.30 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 59.4%, 220 basis points better than the prior-year quarter. Operating margin was 8.8%, 220 basis points worse than the prior-year quarter. Net margin was 3.8%, 240 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.30 billion. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $4.91 billion. The average EPS estimate is $1.56.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 240 members out of 267 rating the stock outperform, and 27 members rating it underperform. Among 79 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 76 give Ascena Retail Group a green thumbs-up, and three 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 $26.33.
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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. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Ascena Retail Group. 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.