Justice still dragging down sales at Ascena

The struggling Justice brand and the West Coast port dispute held back Ascena Retail Group Inc. in the third quarter as the company awaits its acquisition of Ann Inc. to close later in 2015.

Ascena reported fiscal third-quarter profit that fell to $24.4 million, or 15 cents a share, from $33.2 million, or 20 cents a share, in the same period a year ago. Net sales increased 0.5% to $1.15 billion, just shy of the FactSet consensus of $1.16 billion. Combined same-store sales fell 1%, as declines in sales at its Justice and Dressbarn stores offset growth at its Lane Bryant, Maurices and Catherines stores.

David Jaffe, president and CEO of Ascena Retail Group Inc., said: “Looking back on the third quarter, we saw strong performance at Lane Bryant, maurices, and Catherines, and are excited about the major marketing initiatives that were launched this quarter at Lane Bryant and dressbarn. While dressbarn performance was softer than expected in the third quarter, weather and receipt flow from the ports were major factors, and we remain confident in the momentum being built. Finally, at Justice, Brian Lynch and the executive leadership team are actively developing new marketing and pricing strategies for Fall, which we look forward to introducing during July, in time for back to school."

Ascena announced a deal last month to buy apparel retailer Ann Inc. in a deal valued at $2 billion.

Jaffe added: “We remain optimistic about the potential for all of our brands, and they each have distinct initiatives in place to drive higher levels of performance. We are also very excited about our announced acquisition of ANN Inc., and are looking forward to closing the deal in the second half of calendar 2015. The synergies we expect to unlock as a result of the deal will allow us to leverage the power of our shared services platform, and will deliver significant accretion to our shareholders."

Ascena Retail Group is a leading national specialty retailer offering clothing, shoes, and accessories for missy and plus-size women under the Lane Bryant, Cacique, maurices, dressbarn and Catherines brands; and for tween girls under the Justice brand. Ascena Retail Group Inc. operates through its subsidiaries approximately 3,900 stores throughout the United States and Canada.