NEW YORK (TheStreet) -- Ascena Retail Group (ASNA) shares are experiencing volatility on heavy volume trading today after the company released its first quarter earnings results before the opening bell on Wednesday.
The Lane Bryant and DressBarn store operator reported first quarter earnings of 28 cents per diluted share that beat analysts expectations for the period by 1 cent per share. The company also generated $1.19 billion is sales during the quarter, in line with analysts expectations for the period.
The company reported a 4% decline is same store sales during the quarter though online sales grew by 14% during the period.
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 reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: ASNA Ratings Report