The company, which owns Lane Bryant and dressbarn, said in its second-quarter earnings release that it had lower-than-expected year-to-date performance across all of its brands, and so it has reduced its earnings per share guidance for the fiscal year to a range of $1 to $1.05 from a range of $1.10 to $1.15. This is less than the Zacks consensus estimate of $1.14 a share.
For the second quarter, Ascena reported adjusted earnings per share of 23 cents, down 11.5% year over year; however, this beat the Zacks consensus estimate of 20 cents a share. Earnings from continued operations were 19 cents a share, down from 23 cents in the same period one year earlier.
- The revenue growth came in higher than the industry average of 5.5%. Since the same quarter one year prior, revenues slightly increased by 5.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- ASNA's debt-to-equity ratio is very low at 0.12 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Specialty Retail industry average. The net income increased by 22.0% when compared to the same quarter one year prior, going from $43.10 million to $52.60 million.
- Net operating cash flow has increased to $41.00 million or 30.99% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -7.83%.
- You can view the full analysis from the report here: ASNA Ratings Report