Ascena Q3 Sales Up Slightly But Miss Analyst's Estimate

Shares of Ascena Retail Group (NASDAQ: ASNA) have continued lower in Tuesday's post-market trading session following mixed quarterly figures and reaffirmed guidance. The company reported third-quarter 2014 sales rose less than a percent from $1.142 billion in the same quarter last year to $1.145 billion. A consensus of analysts estimates suggested Ascena would post quarterly revenue around $1.17 billion.Same-store sales were down one percent. Comparable-store sales at the company's Justice unit were down four percent, comps at Lane Bryant were up one percent, maurices saw a two percent increase in comps, and dressbarn comps were down four percent. Same-store sales at Ascena's smallest unit (on a sales basis), Catherines, were up four percent.Ascena's net income edged modestly higher from $31.2 million in the year-ago quarter to $33.2 million. On a per-share basis, the company reported EPS from continuing operations of $0.22. Adjusted profit totaled $0.27 per share, better than the $0.26 per share reported during last year's third quarter and the analyst estimate of $0.19 per share.The company's President and CEO, David Jaffe, said, "Third quarter EPS was above our expectations and slightlyabove last year primarily due to lower than anticipated SG&A and tax expense. Q3 sales were challenging, and that trend continued into the start of Q4. As a result, we are implementing promotional strategies and receipt flow adjustments to ensure our inventories are conservatively positioned for the Fall season."Ascena shares are down nearly 2.5 percent from Tuesday's close and down more than four percent from the the intraday high at $16.67. Traders seem to have gotten in front of the mixed quarterly results: shares are down nearly nine percent from the highs set in mid May near $18.