ascena retail group Inn (NASDAQ:ASNA) reported stronger-than-expected results for its first quarter on Monday.
The Mahwah, New Jersey-based ascena retailer of women’s clothing, reported GAAP earnings of $0.03 per diluted share, which was flat to the year-ago period, as an increase in comparable sales and lower restructuring costs were offset by the impact of a lower gross margin rate, unfavorable timing related to the adoption of the new revenue recognition accounting standard, and the unfavorable impact of the 53rd week in the company's prior fiscal year, which moved the peak back-to-school selling week from week one in the prior year to week 52 in the current fiscal year.
Net sales for the first quarter of Fiscal 2019 were $1,592 million compared to $1,590 million in the year-ago period, with a 3% increase in comparable sales offset by lower non-comparable sales and adoption of the new revenue recognition accounting standard.
For the first quarter of Fiscal 2019, the Company reported adjusted earnings of $0.06 per diluted share compared to adjusted earnings of $0.11 per diluted share in the year-ago period, with the decline primarily caused by the unfavorable impact of the 53rd week and the new revenue recognition standard.
Said CEO David Jaffe, "Our first quarter results represent another step forward in our journey to transform ascena into a more agile, profitable company. We delivered a 3% comparable sales increase, driven by strength at our Premium and Kids segments. Adjusted earnings per share of six cents came in at the top of our guide, driven by better than expected top-line growth."
Shares climbed 56 cents, or 20.5%, to $3.29
