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Home>Ann Taylor parent Ascena shares surge 15% premarket as analysts weigh in on earnings

Ann Taylor parent Ascena shares surge 15% premarket as analysts weigh in on earnings

Ann Taylor parent Ascena shares surge 15% premarket as analysts weigh in on earnings

09/26/2017

Shares of Ann Taylor parent Ascena Retail Group Inc. (ASNA) surged 15% premarket Tuesday, after the retailer posted stronger-than-expected earnings for its fiscal fourth quarter. KeyBanc analysts said visibility is still very limited, "but a continuation of a more favorable environment should give the company sufficient headroom to continue its turnaround." The company posted a 4% decline in same-store sales, which was better than the 8% decline KeyBanc was expecting, suggesting traffic trends are still soft. "We believe that brand health remains inconsistent throughout the portfolio," said the analysts. The company's real estate moves are central to its long-term health, they wrote. Ascena may close 667 stores or more over time, but it offered a better explanation of its thinking about closures. Shares have gained about 5% in 2017, while the S&P 500 has gained 12%.

-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com

 

(END) Dow Jones Newswires

09-26-17 0743ET

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