Last Update: 05-Mar-13 07:41 ET
Arcena Retail Group shares soar 16% following beat on earnings
Ascena Retail Group (ASNA $19.20 +2.67) reported second quarter earnings of $0.26 per share, excluding non-recurring items, $0.03 better than the Capital IQ consensus of $0.23, while revenues rose 43.6% year/year to $1.24 billion versus the $1.23 billion consensus. Consolidated comparable store sales excluding e-commerce decreased by 1% for the period, with continued positive comps at Justice and Catherines, up 4% and 6%, respectively. E-commerce sales increased by 123% to $115 million on a consolidated basis, and 27% on a comparable basis. Combined, comparable store and e-commerce sales increased by 2%. Soft holiday sales and a challenging external environment drove negative comparable store sales at Lane Bryant, maurices and dressbarn. Second quarter sales also were negatively impacted by Hurricane Sandy in the Northeast and the co believes that middle income consumers were impacted by a weak economic outlook driven, in part, by tax increases. Co reaffirms guidance for FY13, sees EPS of $1.20-1.30, excluding non-recurring items versus the $1.24 consensus. The guidance is based upon various assumptions, including spring season comparable store sales increases in the range of 0% to 3% and comparable e-commerce sales growth of approximately 25%. Spring Season store openings are expected to be in the range of 100 -- 120 and closings are expected to be in the range of 40 -- 60.
Ascena Retail Group (ASNA $19.20 +2.67) reported second quarter earnings of $0.26 per share, excluding non-recurring items, $0.03 better than the