Ascena Retail Group, Inc. (NASDAQ - ASNA), owner of Duluth-based Maurices, reported declining sales and margins for its fiscal first quarter Monday.
Corporate-wide net sales declined by five percent to $1.589 billion compared with the same year-ago period, the company said. Maurices’ sales also declined by five percent. The clothing firm had quarterly sales of $265.9 million verses $272.2 million during Q1 of 2016.
The corporation reported net income of $7 million, or three cents per diluted share in the first quarter of fiscal 2018, compared to net income of $14 million in the year-ago period, seven cents per diluted share.
“Adjusted earnings per share of 11 cents was in the middle of our guidance range, but represented a disappointing quarter. We were unable to capitalize on the improving macro traffic environment due to fashion missteps that we cannot afford in today's environment,” Ascena Chief Executive Officer David Jaffe said in the quarterly report. “We will continue to roll-out advanced capabilities in merchandise planning and marketing over the next 12 to 18 months, and we expect these capabilities will provide meaningful support to both the top line and gross margin rate.”
Second quarter non-GAAP loss is estimated in the range of seven to 12 cents per share.
Ascena’s share price closed at $2.61 Monday before the earnings announcement. It was trading at $2.02 at noon Tuesday.