In its second-largest acquisition, Amazon buys the company for $970 million.
E-commerce sales account for 8.8% of overall sales in the quarter.
The web grew faster than stores for Ascena Retail Group in the first quarter of 2014. The women’s apparel retailer, which operates Dressbarn, Justice and Maurices stores and e-commerce sites, grew its online sales almost 27%, while total sales only increased 5%.
For the first quarter of fiscal 2014 ended October 26, Ascena, No. 140 in the 2013 Internet Retailer Top 500, reported:
- E-commerce sales increased year over year about 26.7% to $105.7 million from $83.4 million.
- Total sales increased about 5.3% to $1.20 billion from $1.14 billion in the first quarter of fiscal 2014.
- Comparable-store sales increased 2%.
- Net income increased 22.0% to $52.6 million from $43.1 million in the first quarter of fiscal 2014.
The web accounted for about 8.9% of total sales compared to about 7.3% in the first quarter of 2013.
Ascena says the financial results in the first quarter were affected by an increase in operating expenses due to the acquisition of Charming Shoppes. “We were pleased that our top-line momentum continued into the first quarter, with all of our brands generating positive total comps,” says president and CEO David R. Jaffe. “We also continued to make progress on our strategic priorities during the quarter, including our synergy initiatives, which will position the business for long-term growth.”