NEW YORK (TheStreet) -- Shares of Ascena Retail Group Inc. (ASNA) are falling by 16.33% to $13.83 in mid-morning trading on Tuesday, after the company reported a decline in net income for the 2014 fourth quarter to $15.7 million, or 10 cents per share, compared to $29.8 million, or 19 cents per share for the same period last year.
The company, which operates retail stores selling apparel for women and teen girls, said its net sales fell by 1% to $1.18 billion for the 2014 fourth quarter.
Ascena issued full year 2015 earnings guidance and is expecting adjusted earnings between 90 cents and $1, which comes in below the $1.24 per share estimate analysts polled by Bloomberg are expecting.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
The company cited "challenging tween market conditions" as part of the reason profit and sales for two of its brands declined for the 2014 fourth quarter.
Separately, TheStreet Ratings team rates ASCENA RETAIL GROUP INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ASCENA RETAIL GROUP INC (ASNA) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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 and increase in net income. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."