NEW YORK (TheStreet) -- Shares of Ascena Retail Group (ASNA) - Get Report are diving by 9.97% to $6.50 in after-hours trading on Tuesday, after the Mahwah, NJ-based retailer posted weaker-than-expected revenue for the 2016 fiscal third quarter and provided disappointing guidance.

After today's closing bell, the owner of Ann Taylor, Loft and Lane Bryant reported revenue of $1.67 billion, below analysts' expectations of $1.73 billion.

Adjusted earnings of 15 cents per share beat analysts' estimates of 13 cents per share.

Total comparable store sales declined 4% during the period.

"The environment this Spring has been challenging. After the disruption of a warm holiday season, we've had to contend with an unseasonably cold spring and resulting elevated traffic headwinds," CEO David Jaffe said in a statement.

"While I think we have managed the business well, particularly with respect to inventory levels, we were not able to fully mitigate these challenges," he added.

For fiscal 2016, the company sees adjusted earnings per share of 67 cents to 70 cents on revenue of about $7.1 billion due to the current specialty retailer environment.

Analysts are looking for earnings of 75 cents per share on revenue of $7.2 billion.

Ascena's other brands include Justice, Maurices, Dressbarn and Catherines.

About 4.29 million of the company's shares were traded today vs. its average volume of 2.45 million shares per day.

Separately, TheStreet Ratings Team has a "Sell" rating with a score of D+ on the stock.

The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: ASNA

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