ascena retail group, inc (ASNA) swung to a net profit for the quarter ended Oct. 29, 2016. The company has made a net profit of $14.40 million, or $ 0.07 a share in the quarter, against a net loss of $18.10 million, or $0.10 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $36 million, or $0.18 a share compared with $71.20 million or $0.36 a share, a year ago.
Revenue during the quarter went up marginally by 0.38 percent to $1,678.40 million from $1,672 million in the previous year period. Gross margin for the quarter expanded 643 basis points over the previous year period to 60.41 percent. Operating margin for the quarter period stood at positive 3.05 percent as compared to a negative 0.72 percent for the previous year period.
Operating income for the quarter was $51.20 million, compared with an operating loss of $12 million in the previous year period.
David Jaffe, President and Chief Executive Officer of ascena retail group, inc., commented, "I’m pleased that our efforts delivered first quarter non-GAAP earnings in the middle of our guidance range. We reacted decisively to unfavorable selling trends in September through more aggressive, but targeted and effective promotional activity. We also reduced operating costs and planned capital expenditures that will benefit full year earnings and free cash flow."
For financial year 2017, the company projects diluted earnings per share to be in the range of $0.60 to $0.65 on adjusted basis.
Working capital drops significantly
ascena retail group, inc has witnessed a decline in the working capital over the last year. It stood at $258.20 million as at Oct. 29, 2016, down 49.82 percent or $256.30 million from $514.50 million on Oct. 24, 2015. Current ratio was at 1.26 as on Oct. 29, 2016, down from 1.50 on Oct. 24, 2015.
Days inventory outstanding has decreased to 55 days for the quarter compared with 82 days for the previous year period. At the same time, days payable outstanding went up to 51 days for the quarter from 39 for the same period last year.
Debt comes down
ascena retail group, inc has recorded a decline in total debt over the last one year. It stood at $1,601 million as on Oct. 29, 2016, down 11.38 percent or $205.50 million from $1,806.50 million on Oct. 24, 2015. Total debt was 29.17 percent of total assets as on Oct. 29, 2016, compared with 31.12 percent on Oct. 24, 2015. Debt to equity ratio was at 0.85 as on Oct. 29, 2016, down from 0.97 as on Oct. 24, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
