“We now expect a ~MSD% comp decline in 4Q (for the remaining Kids businesses). Gross margin was pressured in the quarter and the rate contracted 240bps YoY (when adjusting for maurices). The company was highly promotional during the quarter due to elevated inventory. Inventory remains high (+16%; ex. maurices) and while about one-third of the increase was attributed to timing, across the portfolio inventory was high (Premium Fashion +27%). As such, we expect continued gross margin contraction in 4Q as the company remains promotional to clear inventory and enter FY20 in an improved position.”
According to TipRanks.com, Drbul is a 5-star analyst with an average return of 8.5% and a 64.7% success rate. Drbul covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Capri Holdings Limited, and Ralph Lauren Corp.
The word on The Street in general, suggests a Hold analyst consensus rating for Ascena Retail Group with a $1 average price target, implying a 13.8% upside from current levels. In a report issued on June 11, B.Riley FBR also maintained a Hold rating on the stock with a $1 price target.
Based on Ascena Retail Group’s latest earnings release for the quarter ending April 30, the company reported a quarterly GAAP net loss of $238 million. In comparison, last year the company had a GAAP net loss of $40.2 million.
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