Ascena Retail Posts Q1 Loss

(RTTNews) - Clothing retailer Ascena Retail Group Inc. (ASNA), Tuesday posted a loss for the first quarter, hurt largely by lower gross margins and acquisition costs that offset a growth in revenues.

Suffern, New York-based Ascena reported first-quarter loss of $18.1 million or $0.10 per share, compared to a profit of $53.5 million or $0.32 per share last year.

Excluding one-time items, adjusted earnings for the quarter were $0.36 per share for the quarter. On average, 14 analysts polled by Thomson Reuters estimated earnings of $0.29 per share for the quarter. Analysts' estimates typically exclude special items.

Ascena's revenues for the quarter grew 40 percent to $1.67 billion from last year's $1.19 billion last year. Analysts had a consensus revenue estimate of $1.78 billion for the quarter. The revenue increase was driven by the acquisition of Ann Inc.

Gross margin dropped to 53.6 percent from 58.2 percent last year. Ascena's apparel targets women, and tween girls and boys. The company operates under segments such as Justice, Lane Bryant, maurices and Catherines.

CEO David Jaffe said, "On the operating front, we were pleased with first quarter earnings, which exceeded our expectations. We saw strong sales performance at maurices and Lane Bryant, and significant gross margin rate recovery at Justice, Ann Taylor and LOFT."

ASNA closed Tuesday's trading at $11.78, up $0.45 or 3.97%, on the Nasdaq. The stock further rose $0.17 or 1.44% in the after-hours trade.