Ascena Retail Group comparable holiday sales down 3.1 percent

Consolidated comparable sales decreased 3.1 percent at Ascena Retail over the holiday period. Premium Fashion comparable sales declined 4.1 percent including 8.2 percent fall at Ann Taylor and 1.8 percent at Loft. For the combined November / December fiscal periods, consolidated comparable sales were down 4.4 percent.

Commenting on the company’s performance, David Jaffe, President and CEO, said in a statement, “We were disappointed by our overall holiday performance. Outside of discrete peaks during the holiday season, we experienced stronger than expected store traffic headwinds. As a result, we were forced into a more highly promotional stance in order to move through inventory in the face of softer overall consumer demand. At this juncture, we are positioning our full year outlook assuming that the trend we experienced through Holiday continues.”

Comparable sales decline across core segments

Value Fashion comparable sales were down 6 percent including 7.1 percent decline at Maurices and 4.6 percent at Dressbarn. Plus Fashion segment witnessed comparable sales decline of 3.7 percent including 5.1 percent at Lane Bryant and 1.6 percent rise at Catherines. Comparable sales of the kids fashion segment increased 2.7 percent.

Excluding restructuring, acquisition and integration related expenses, and non-cash Ann purchase accounting adjustments, the company now expects non-GAAP EPS of 0.11 dollar to 0.08 dollar for the fiscal second quarter, ending January 28, 2017. Based on ongoing store traffic headwinds, the company now expects full year fiscal 2017 non-GAAP EPS in the range of 0.37 dollar to 0.42 dollar for the 52-week period ending July 29, 2017.

Picture:Facebook/Ann Taylor