ASCENA RETAIL GROUP, INC. ANNOUNCES FOURTH QUARTER FISCAL 2019 RESULTS;
EXCEEDS GUIDANCE ON SALES AND ADJUSTED OPERATING INCOME
REPORTS LOSS PER SHARE FROM CONTINUING OPERATIONS OF $2.12;
ADJUSTED LOSS PER SHARE FROM CONTINUING OPERATIONS OF $0.13
MAHWAH, NJ - October 3, 2019 - ascena retail group, inc. (Nasdaq - ASNA) (“ascena” or the “Company”) today reported financial results for its fiscal fourth quarter and year ended August 3, 2019.
Fourth Quarter Highlights:
Comparable sales were flat;
Operating loss was $354 million, which primarily reflects non-cash impairments of goodwill and intangible assets recorded in Fiscal 2019, as well as restructuring costs; adjusted operating income, excluding the non-cash impairment charges and other items as detailed in Note 2, was $16 million;
Divestiture of maurices completed;
Dressbarn wind down progressing well and on track to complete store closures in December 2019;
Returned to normalized inventory levels, well positioned for holiday season;
Cash and revolver availability of $725 million; compliant with all covenants; and
Two new independent members appointed to the Board of Directors to expand expertise.
Carrie Teffner, Interim Executive Chair of ascena commented, “We made pivotal changes in the back half of Fiscal 2019 as we exited our Value Fashion segment to focus on our brands where we see the biggest profitability potential. Our Board and executive team continue to actively assess the portfolio as we remain laser focused on our key objective of returning to sustainable growth, improving operating margins and optimizing our capital structure as we remain committed to enhancing shareholder value.”
Gary Muto, Chief Executive Officer of ascena commented, "We were pleased to have exceeded our adjusted operating income expectations for the fourth quarter through better than expected comparable sales results and lower operating expenses. In addition, we ended the quarter with a strong cash and liquidity position with no borrowings under our credit facility."
Mr. Muto continued, "Looking ahead, by shifting our focus to our brands and right-sizing our cost structure, we plan to capitalize on the meaningful and differentiated presence our brands have in the marketplace. We are evolving our merchandising strategy to incorporate greater versatility in our assortment while maintaining flexibility to keep pace with her changing desires in order to deepen loyalty with existing customers, reengage lapsed customers and attract new customers. In addition, we are taking steps to enhance our cash position over the course of Fiscal 2020 through a combination of cost saving initiatives, rationalization of our capital expenditures and disciplined working capital management. We are excited by the opportunities that lie ahead as we position ourselves to deliver long term profitable growth and enhance shareholder value.”
The following information was filed by Ascena Retail Group, Inc. (ASNA) on Thursday, October 3, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Form Type: 10-K Annual Report Accession Number: 0001498301-19-000092 Submitted to the SEC: Thu Oct 10 2019 2:14:11 AM EST Accepted by the SEC: Thu Oct 10 2019 Period: Saturday, August 3, 2019 Industry: Retail Apparel And Accessory Stores