Ascena Retail ends Q1 with a $53 million increase in long-term debt

By Lisa Kerner

Charlotte, N.C., Dec. 2 - Ascena Retail Group, Inc. ended its first fiscal quarter on Oct. 26 with all of its brands "generating positive total comps," president and chief executive officer David R. Jaffe said during the company's earnings call on Monday.

"We ended the quarter with $202 million in cash and cash equivalents," chief financial officer Dirk Montgomery said.

Of that amount, about $160 million is overseas.

"We ended the quarter with long-term debt of $189 million, a $53 million increase from the prior quarter, due in part to an expected seasonal working capital build prior to the holidays," Montgomery said.

Ascena reported first-quarter fiscal 2014 earnings from continuing operations of $0.33 per diluted share.

Net sales for the first quarter grew 5% to $1.20 billion from $1.14 billion in the prior year's first quarter.

Gross margin for the quarter was up at $710.0 million, or 59.3% of sales.

Operating income for the first quarter was $85.6 million, or 7.2% of sales, compared with $72.9 million, or 6.4% of sales, for the prior-year period.

Ascena is a Suffern, N.Y.-based specialty retailer of apparel for women and tween girls.

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