The e-retailer reports a $126 million net loss, stemming from a $640 million year-over-year increase in spending in the quarter on technology and content ...
The apparel retailer, which operates e-commerce sites for brands including Lane Bryant, Maurices and Catherines, says online sales reached $117.1 million in Q3 up from $98.6 million a year earlier. However comparable-store sales fell.
Store sales fell while e-commerce sales grew a healthy amount for Ascena Retail Group Inc. in the retailer’s third quarter.
To help manage online sales growth, the retailer, No. 86, in the 2014 Internet Retailer Top 500 Guide, says it opened a new e-commerce fulfillment center in Q3 and expects to fulfill all web sales for its apparel and accessories brands through the new center by spring of 2015. Ascena operates apparel e-commerce sites for brands including Lane Bryant, Maurices and Catherines.
For fiscal Q3 2014 ended April 26, Ascena reported:
- Web sales increased 18.8% to $117.1 million from $98.6 million a year earlier.
- Total sales of $1.145 billion, up by .03% from $1.142 billion.
- Comparable-store sales fell 2.9% to $910.9 million from $938.4 million.
- Net income of $33.2 million, up 6.4% from $31.2 million.
- Buying, distribution and occupancy costs of $219.6 million, up 5.5% from $208.1 million a year earlier. The increase was primarily related to investments in merchandising and design, increased freight and fulfillment costs to support strong e-commerce growth, and the impact of new store growth for brands Justice and Maurices, Ascena says.
Web sales accounted for 10.2% of sales for the quarter, compared with 8.6% in the third quarter of 2013.
For the first nine months of fiscal 2014, Ascena reported:
- E-commerce sales increased by 24.7%, to $371.7 million from $298.1 million in the same period a year earlier.
- Total sales of $3.61 billion, up by 2.6% from $3.52 billion.
- Comparable-store sales decreased by 1%.
- Net income of $117.7 million, a decline of 3.1% from $121.5 million.
- Buying, distribution and occupancy costs totaled $670.9 million, up 9.4% from $613.0 million a year earlier.
Web sales accounted for 10.3% of sales for the first nine months, compared with 8.5% in the same period last year.