Ascena Retail Group Beats Up on Analysts Yet Again

Ascena Retail Group (Nasdaq: ASNA  ) reported earnings on March 4. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 26 (Q2), Ascena Retail Group met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share shrank significantly.

Gross margins increased, operating margins dropped, net margins dropped.

Revenue details
Ascena Retail Group chalked up revenue of $1.24 billion. The seven analysts polled by S&P Capital IQ expected to see revenue of $1.23 billion on the same basis. GAAP reported sales were 44% higher than the prior-year quarter's $862.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.26. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.23 per share. Non-GAAP EPS of $0.26 for Q2 were 37% lower than the prior-year quarter's $0.41 per share. GAAP EPS of $0.29 for Q2 were 29% lower than the prior-year quarter's $0.41 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 53.5%, much better than the prior-year quarter. Operating margin was 6.1%, 550 basis points worse than the prior-year quarter. Net margin was 3.8%, 360 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.19 billion. On the bottom line, the average EPS estimate is $0.31.

Next year's average estimate for revenue is $4.77 billion. The average EPS estimate is $1.24.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 240 members out of 268 rating the stock outperform, and 28 members rating it underperform. Among 81 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 77 give Ascena Retail Group a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ascena Retail Group is outperform, with an average price target of $22.00.

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