Ascena Retail Group Inc Stock Sinks on Weak Earnings Outlook

ASNA stock fell more than 11% after hours

Ascena Retail Group Inc (NASDAQ:ASNA) had high hopes going into its fourth quarter of fiscal 2018, but its latest fiscal report suggested that the company’s business is not doing as well as investors expected.

Ascena Retail Group IncIn its latest quarterly earnings report, the women’s apparel retailer — which is the parent company of Ann Taylor and Lane Bryant — announced its outlook for its fourth quarter, which is now slated to bring in an earnings in the range of an adjusted loss of 5 cents per share to an adjusted profit of 5 cents per share, while revenue is slated to be between $1.62 billion and $1.66 billion.

Ascena Retail Group’s bottom line guidance was well below analysts’ expectations as the break-even midpoint is lacking when compared to Wall Street’s adjusted earnings projection of 3 cents per share, according to data compiled by FactSet. Revenue is slated to be stronger than estimated as analysts are calling for revenue of $1.58 billion in their forecast, according to FactSet.

For its third quarter of the fiscal year, the retailer reported a loss of $40.2 million, or 20 cents per share, which is considerably better than its year-ago loss of $1.03 billion, or $5.29 per share. Ascena Retail Group’s adjusted loss was 8 cents per share, while its revenue fell to $1.5 billion from $1.57 billion in the year-ago period.

Wall Street predicted an adjusted loss of 9 cents per share on revenue of $1.47 billion, per FactSet.

ASNA stock was plummeting late in the day Monday, falling about 11.2% after the bell. Shares were up more than 10.2% during regular trading hours ahead of the company’s earnings announcement.

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