Upbeat Services Stock On the move: Ascena Retail Group, Inc. (NASDAQ: ASNA)

On Friday, Ascena Retail Group, Inc. (NASDAQ: ASNA) shares price traded between $4.13 and $4.29 during the last trading session upbeat with +2.88% at $4.28. The shares recorded a trading volume 1,266,874 million shares as compared to its average volume of 3,086,495 shares. The company has 191.92M shares outstanding and market value of 821.401M. Over the one year trading period, the stock has a peak price of $4.74 and its down is recorded at $1.69. The short ratio in the (Ticker) stock is 12.12 and the short float is around of 24.53%.

ascena retail group, inc. (NASDAQ : ASNA) stated financial results for its fiscal third quarter ended April 28, 2018. For the third quarter of Fiscal 2018, the Company stated a GAAP loss of $0.20 per diluted share contrast to a GAAP loss of $5.29 per diluted share in the year-before period.

Net Sales and Comparable Sales

Net sales for the third quarter of Fiscal 2018 were $1,503.3M contrast to $1,565.1M in the year-before period, with the decline caused primarily by a 3% decline in comparable

Gross margin

Gross margin declined to $883M, or 58.7% of sales, for the third quarter of Fiscal 2018 contrast to $948M, or 60.6% of sales in the year-before period. Gross margin dollars declined year-on-year primarily as a result of the decline in comparable sales. Gross margin rate declined 190 basis points due primarily to performance at our Value Fashion section, where both maurices and dressbarn experienced important declines.

Selling, general, and administration expenses

Selling, general, and administrative (“SG&A”) expenses for the third quarter of Fiscal 2018 declined 3% to $491M, or 32.6% of sales, contrast to $506M, or 32.3% of sales in the year-before period. The decline in SG&A expenses was primarily Because of about $30M in synergies and cost reduction initiatives, mainly reflecting headcount and non-merchandise procurement savings, lower store expenses resulting from our fleet optimization program, and lower performance-based compensation. These items were offset in part by inflationary increases and higher write-downs of store-related fixed assets, primarily at the Value Fashion section. On a non-GAAP adjusted basis, SG&A expenses for the third quarter declined 6% to $474M contrast to $505M in the year-before period and leveraged 75 basis points as a percentage of net sales primarily Because of cost reductions from our enterprise transformation.

Net loss and net loss per diluted share

The Company stated a Net loss of $40M, or $0.20 per diluted share in the third quarter of Fiscal 2018, contrast to $1,030.7M, or $5.29 per diluted share, in the year-before period.

Fiscal Third Quarter Balance Sheet Highlights

Cash and cash equivalents

The Company ended the third quarter of Fiscal 2018 with Cash and cash equivalents of $363M. Of this amount, about $279M was held outside of the U.S. Subsequent to the end of the third quarter of Fiscal 2018, the Company repatriated about $225M of its foreign cash back to the U.S., of which $112.5M was used to prepay required term loan payments through October of 2019.

Inventories

The Company ended the third quarter of Fiscal 2018 with inventory of $668M, down 6% from $714M at the end of the year-before period.

Capital expenditures

Capital expenditures totaled $41M in the third quarter of Fiscal 2018, primarily to support new capabilities and planned initiatives. The Company continues to expect full year capital expenditures in the range of $190M to $220M.

Debt

The Company ended the third quarter of Fiscal 2018 with total debt of $1.574B, which represents the balance remaining on the term loan. There were no borrowings outstanding under the Company’s revolving credit facility at the end of the third quarter of Fiscal 2018. In addition, the Company had $471M of borrowing availability under its revolving credit facility. As noted above, the Company repaid $112.5M of its term loan subsequent to the end of the third quarter of Fiscal 2018.

In the liquidity ratio analysis; Ascena Retail Group, Inc.’s (ASNA) debt to equity ratio was 2.00 while current ratio was 1.30. The company has the institutional ownership of 93.60% while the Beta factor was 1.57. The stock’s RSI amounts to 65.41.

 

Andrew Carr

Andrew Carr covers the Business news across the all us market sectors for Streetobserver.com. He has over 5 years experience writing financial and business news. He is a graduate of the University of Florida graduating with an MBA. He focuses on adding value to investors' portfolios via thoroughly checked proprietary information and data sources. He has a very strong interest in stock trading, and other various investments. He currently lives in Fort Myers, FL with his wife Heidi.

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