Q2 FY16 gross margin up 44.72% at Ascena Retail

Ascena Retail, a US based group of brands for apparel and accessories, saw a rise of 44.72 per cent to $958.1 million in its gross margin in the second quarter of fiscal 2016, ending on January 23, 2016, as compared to $662 million in the corresponding quarter last fiscal, according to a press statement released by the group.

Net income for Q2 of FY16 was $22.6 million as compared to $8.7 million in the second quarter of fiscal 2015, ending on January 24, 2015.

Diluted EPS for the quarter was $0.12 as compared to $0.05 in the same quarter last fiscal.

Net sales for this period stood at $1,841.8 million as compared to $1,288.6 million in the previous quarter, showing a rise of 42.93 per cent.

Commenting on the results, David Jaffe, president and CEO of Ascena Retail Group said, “Our second quarter earnings performance came in just above the pre-announced range we shared in mid-January, mainly due to the strengthening performance at Loft and margin rate favourability at Justice.”

“We exited the second quarter with inventory well-managed, and will remain disciplined in this area as we continue to navigate the dynamic consumer landscape,” he added. (MCJ)