— Revenue declined by 4% to $1.22 billion versus $1.45 billion expected. This primarily reflects a comparable sales decrease of 2% for the quarter, a decline in other revenue and a decrease in non-comparable sales.
— During the quarter, Ascena incurred non-cash impairment charges of goodwill and other intangible assets. This offset in part by the benefit of cost reductions.
— At the end of the second quarter, the company had cash and cash equivalents of $374 million while the total debt stood at $1.29 billion, which represents the balance remaining on the term loan.
— Looking ahead into the third quarter, the company expects net sales in the range of $1.05-1.08 billion and comparable sales in the negative low-single digits range. The consensus estimates revenue of $1.3 billion.
— Gross margin is predicted to be in the range of 57.8-58.3% and adjusted operating loss is projected to be in the range of $30-10 million for the third quarter.
— For the full year, the company continues to expect the total capital spending to be in the range of $80-100 million, which represents a significant decrease compared to prior years.