The apparel retailer, Ascena Retail Group Inc. (NASDAQ:ASNA) has announced warnings for investors that that company’s fiscal second-quarter losses would be way larger than anticipated, as unsatisfactory holiday traffic steered to do more promotional activity.
Ascena Retail Group Inc. (NASDAQ:ASNA), which store brands include Ann Taylor and Loft, now is predicting an adjusted per-share drop of 11 cents to 8 cents, in contrast with the FactSet prediction for a loss of 3 cents.
The company now anticipates fiscal 2017 adjusted earnings per share of 37 cents to 42 cents, less than the FactSet consent of 58 cents.
Meanwhile company’s same-store sales for the holiday period–Nov. 19 through Jan. 2 have dropped 3.1%, with Ann Taylor sales plunging 8.2%, Loft sales dropped 1.8% and Lane Bryant sales slumped 5.1%.
“Outside of discrete peaks during the holiday season, we experienced stronger than expected store traffic headwinds,” said Chief Executive David Jaffe. “As a result, we were forced into a more highly promotional stance in order to move through inventory in the face of softer overall consumer demand.”
Furthermore Ascena Retail Group, (NASDAQ:ASNA) stock, which was still inactive in premarket trade, has plummeted 43% over the past 12 months, while the SPDR S&P Retail ETF has added 6.9% and the S&P 500 has gathered 18%.