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Ascena Retail: Expenses Increase and Net Income Decreases

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Ascena Retail’s price movement

Ascena Retail Group (ASNA) has a market cap of $2.18 billion. Its YTD (year-to-date) performance was rising. After the 4Q15 earnings report, Ascena Retail rose by 11.78% to close at $13.38 per share. The price movement on a weekly, monthly, and YTD basis is 8.08%, 7.56%, and 6.53%, respectively. Its price movement is 9.58% on a trailing five-day basis.

Technically, it has broken the support of the 200-day moving average. Currently, it’s trading at 12.84% above the 20-day moving average, 5.16% above the 50-day moving average, and -1.05% below the 200-day moving average.

The Guggenheim S&P MidCap 400 Pure Value ETF (RFV) invests 1.90% of its holdings in Ascena Retail. RFV tracks a fundamentally weighted index of US-listed value companies. The YTD price movement of RFV is -7.09%.

Ascena Retail’s competitors and their market caps are:

  • Kohl’s (KSS) – $9.82 billion
  • Macy’s (M) – $18.92 billion
  • Chico’s FAS (CHS) – $2.31 billion
  • L Brands (LB) – $26.92 billion
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Ascena Retail’s performance in 4Q15 and fiscal 2015

The company reported a net revenue of $1,169.8 million in 4Q15—a rise of 1.69% on a quarterly basis. The revenue of Lane Bryant, Dressbarn, and Catherines rose by 4.70%, 18.40%, and 4.20%, respectively. The gross profit fell by 5.50%. The net income reported a loss of $323.4 million with the increase in SG&A (selling, general, and administrative) expenses and the impairment of goodwill.

In fiscal 2015, the company’s revenue was reported as $4,802.9 million—a rise of 0.25% on a yearly basis. The cash and cash equivalents rose by 53.30%. The company increased its debt. As a result, the debt-to-equity ratio rose to 0.92—a rose of 16.40% on a yearly basis.

About Ascena Retail 

Ascena Retail Group is a leading speciality retailer. It offers clothing, shoes, and accessories for misses and plus-size women under the Ann Taylor, LOFT, Lou & Grey, Lane Bryant, Cacique, Maurices, Dressbarn, and Catherines brands. It offers its products for teen girls under the Justice brand. Through its subsidiaries, the company operates ~4,900 stores throughout the US, Canada, and Puerto Rico.

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