Ascena had a “challenging holiday selling season"

Ascena had a “challenging holiday selling season"

Fashion retail business Ascena has cut its full-year earnings forecast on the back of weaker than expected holiday sales.

The company said it expects adjusted diluted earnings per share in the range of US$1.10 to $1.15. This compares to previous guidance of $1.25 to $1.30.

"A challenging holiday selling season resulted in increased promotional activity," said CEO David Jaffe. "We successfully cleared excess inventory and have taken the necessary markdowns in the second quarter to transition cleanly into the spring season."

In the fiscal November to December period, comparable store sales declined 2%. Online sales, however, were up 27% and both combined, total comparable revenues climbed 1%.