- Ascena Retail Group (NASDAQ:ASNA) reports comparable sales were flat in FQ3.
- Comparable sales gains at Ann Taylor (+5%), LOFT (+5%) and Premium Fashion (+5%) were offset by drops at Justice (-5%), Catherines (-6%) and Lane Bryant (-2%).
- Gross margin fell 240 bps to 57.1% of sales. The decline in gross margin rate was attributed to higher promotional activity to address elevated inventory levels and soft pre-Easter selling at the Premium Fashion and Kids Fashion segments, as well as clearance of the under-performing tops assortment at Lane Bryant.
- Looking ahead, Ascena says it has identified an incremental $150M cost savings opportunity. Management expect the majority of the incremental savings to be realized in FY20.
- Shares of ASNA are down 5.77% AH to $0.98.
- Previously: Ascena Retail Group EPS beats by $0.11, misses on revenue (June 10)