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.
TheStreet Ratings team rates ASCENA RETAIL GROUP INC as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ASCENA RETAIL GROUP INC (ASNA) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."