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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt 1.09
ASNA's Cash to Debt is ranked higher than
72% of the 1168 Companies
in the Global Apparel Stores industry.

( Industry Median: 0.97 vs. ASNA: 1.09 )
ASNA' s 10-Year Cash to Debt Range
Min: 0.27   Max: No Debt
Current: 1.09

Equity to Asset 0.56
ASNA's Equity to Asset is ranked higher than
77% of the 1156 Companies
in the Global Apparel Stores industry.

( Industry Median: 0.48 vs. ASNA: 0.56 )
ASNA' s 10-Year Equity to Asset Range
Min: 0.44   Max: 0.78
Current: 0.56

0.44
0.78
Interest Coverage 32.43
ASNA's Interest Coverage is ranked higher than
69% of the 816 Companies
in the Global Apparel Stores industry.

( Industry Median: 33.71 vs. ASNA: 32.43 )
ASNA' s 10-Year Interest Coverage Range
Min: 9.06   Max: 9999.99
Current: 32.43

9.06
9999.99
F-Score: 4
Z-Score: 3.21
M-Score: -2.84
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 4.40
ASNA's Operating margin (%) is ranked higher than
73% of the 1171 Companies
in the Global Apparel Stores industry.

( Industry Median: 5.22 vs. ASNA: 4.40 )
ASNA' s 10-Year Operating margin (%) Range
Min: 1.03   Max: 10.86
Current: 4.4

1.03
10.86
Net-margin (%) 2.78
ASNA's Net-margin (%) is ranked higher than
72% of the 1171 Companies
in the Global Apparel Stores industry.

( Industry Median: 3.43 vs. ASNA: 2.78 )
ASNA' s 10-Year Net-margin (%) Range
Min: 1.02   Max: 7.09
Current: 2.78

1.02
7.09
ROE (%) 8.03
ASNA's ROE (%) is ranked higher than
72% of the 1152 Companies
in the Global Apparel Stores industry.

( Industry Median: 8.97 vs. ASNA: 8.03 )
ASNA' s 10-Year ROE (%) Range
Min: 2.56   Max: 22.03
Current: 8.03

2.56
22.03
ROA (%) 4.42
ASNA's ROA (%) is ranked higher than
75% of the 1171 Companies
in the Global Apparel Stores industry.

( Industry Median: 4.22 vs. ASNA: 4.42 )
ASNA' s 10-Year ROA (%) Range
Min: 1.6   Max: 12.36
Current: 4.42

1.6
12.36
ROC (Joel Greenblatt) (%) 19.39
ASNA's ROC (Joel Greenblatt) (%) is ranked higher than
76% of the 1169 Companies
in the Global Apparel Stores industry.

( Industry Median: 17.70 vs. ASNA: 19.39 )
ASNA' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 6.34   Max: 62.68
Current: 19.39

6.34
62.68
Revenue Growth (%) 17.20
ASNA's Revenue Growth (%) is ranked higher than
94% of the 1031 Companies
in the Global Apparel Stores industry.

( Industry Median: 5.50 vs. ASNA: 17.20 )
ASNA' s 10-Year Revenue Growth (%) Range
Min: 4   Max: 23.3
Current: 17.2

4
23.3
EBITDA Growth (%) 1.50
ASNA's EBITDA Growth (%) is ranked higher than
67% of the 851 Companies
in the Global Apparel Stores industry.

( Industry Median: 6.10 vs. ASNA: 1.50 )
ASNA' s 10-Year EBITDA Growth (%) Range
Min: -15.4   Max: 71
Current: 1.5

-15.4
71
EPS Growth (%) -7.20
ASNA's EPS Growth (%) is ranked higher than
63% of the 823 Companies
in the Global Apparel Stores industry.

( Industry Median: 7.20 vs. ASNA: -7.20 )
ASNA' s 10-Year EPS Growth (%) Range
Min: -37   Max: 111.8
Current: -7.2

-37
111.8
» ASNA's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q3 2013

ASNA Guru Trades in Q3 2013

Jim Simons 335,468 sh (New)
Joel Greenblatt 267,055 sh (New)
Steven Cohen 254,323 sh (+571.85%)
Private Capital 1,087,527 sh (+59.19%)
Alan Fournier 8,064,600 sh (+15.22%)
PRIMECAP Management 3,340,400 sh (+3.02%)
Leon Cooperman Sold Out
Ken Fisher 2,660,305 sh (-0.37%)
Chuck Royce 7,686,185 sh (-1.96%)
Third Avenue Management 663,601 sh (-45.24%)
» More
Q4 2013

ASNA Guru Trades in Q4 2013

Paul Tudor Jones 26,880 sh (New)
PRIMECAP Management 5,660,500 sh (+69.46%)
Steven Cohen 335,809 sh (+32.04%)
Chuck Royce 8,000,285 sh (+4.09%)
Jim Simons Sold Out
Joel Greenblatt Sold Out
Ken Fisher 2,642,290 sh (-0.68%)
Alan Fournier 7,781,700 sh (-3.51%)
Third Avenue Management 477,260 sh (-28.08%)
Private Capital 532,377 sh (-51.05%)
» More
Q1 2014

ASNA Guru Trades in Q1 2014

John Burbank 10,458 sh (New)
PRIMECAP Management 6,951,400 sh (+22.81%)
Private Capital 548,177 sh (+2.97%)
Chuck Royce 8,076,130 sh (+0.95%)
Steven Cohen 56,400 sh (unchged)
Alan Fournier 7,781,700 sh (unchged)
Third Avenue Management 477,260 sh (unchged)
Ken Fisher 2,340,074 sh (-11.44%)
Paul Tudor Jones 14,326 sh (-46.7%)
Steven Cohen 176,690 sh (-47.38%)
» More
Q2 2014

ASNA Guru Trades in Q2 2014

Paul Tudor Jones 21,864 sh (+52.62%)
Private Capital 784,487 sh (+43.11%)
PRIMECAP Management 9,068,900 sh (+30.46%)
Chuck Royce 8,477,190 sh (+4.97%)
Alan Fournier 7,781,700 sh (unchged)
Third Avenue Management Sold Out
John Burbank Sold Out
Ken Fisher 640,804 sh (-72.62%)
» More
» Details

Insider Trades

Latest Guru Trades with ASNA

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Private Capital 2014-06-30 Add 43.11%0.45%$16.4 - $18.02 $ 12.19-29%784487
Third Avenue Management 2014-06-30 Sold Out 0.16%$16.4 - $18.02 $ 12.19-29%0
Ken Fisher 2014-06-30 Reduce -72.62%0.07%$16.4 - $18.02 $ 12.19-29%640804
PRIMECAP Management 2014-06-30 Add 30.46%0.04%$16.4 - $18.02 $ 12.19-29%9068900
John Burbank 2014-06-30 Sold Out 0.01%$16.4 - $18.02 $ 12.19-29%0
PRIMECAP Management 2014-03-31 Add 22.81%0.03%$17 - $22.58 $ 12.19-36%6951400
John Burbank 2014-03-31 New Buy0.01%$17 - $22.58 $ 12.19-36%10458
Private Capital 2013-12-31 Reduce -51.05%1.02%$19.44 - $21.56 $ 12.19-40%532377
Joel Greenblatt 2013-12-31 Sold Out 0.17%$19.44 - $21.56 $ 12.19-40%0
Third Avenue Management 2013-12-31 Reduce -28.08%0.07%$19.44 - $21.56 $ 12.19-40%477260
PRIMECAP Management 2013-12-31 Add 69.46%0.06%$19.44 - $21.56 $ 12.19-40%5660500
Private Capital 2013-09-30 Add 59.19%0.74%$16.26 - $20.06 $ 12.19-31%1087527
Leon Cooperman 2013-09-30 Sold Out 0.5%$16.26 - $20.06 $ 12.19-31%0
Third Avenue Management 2013-09-30 Reduce -45.24%0.19%$16.26 - $20.06 $ 12.19-31%663601
Joel Greenblatt 2013-09-30 New Buy0.17%$16.26 - $20.06 $ 12.19-31%267055
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe Members only!!
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Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Ascena Retail Group Inc

Third Avenue Management Comments on Ascena - Jul 02, 2013


Ascena Retail Group (ASNA) is a specialty retailer primarily serving the female demographic within the U.S. While history has shown that retailing can be a very tough business over the long-term, there are multiple elements of Ascena we find unusually attractive. That we had owned its predecessor, Dress Barn, nearly 10 years ago and have followed the company's development in more recent years, only increased our comfort level.

• Portfolio of niche brands. By operating a portfolio of diversified brands, Ascena is not overly reliant on the success of any one of them. Moreover, each of the brands operates separate stores within niche markets and faces very little in the way of direct competition, unlike most apparel retailers. Ascena's primary brands are Dress Barn, Lane Bryant, Catherines, Maurices and Justice and each cater to different niches of the female population based on age, geography, and size (with multiple brands targeting plus size customers, for example). While each brand largely operates autonomously, Ascena employs a unique shared services model whereby the back office functions of all the brands are centralized, thus driving efficiencies across the portfolio and allowing the brands to focus on their customers.

• Strong, aligned management. Ascena's management team owns a significant piece of the company and has a long track record of successfully growing the company by identifying, acquiring and integrating brands into its portfolio without compromising Ascena's strong financial position. While the most recent acquisition of Lane Bryant and Catherines (via the acquisition last year of their holding company Charming Shoppes) has experienced hiccups, we believe Management will ultimately prove successful with its integration strategy and that the current integration period will ultimately prove to just be a pause in the company's long-term track record of creating value for shareholders. Encouragingly, Ascena announced a new president for Lane Bryant shortly following our investment in the company. The new president has been well-received given her stellar track record running The Limited for the last six years and removes a significant question mark as the brand had been without a president since last fall.

• Attractive valuation. Shares of Ascena were purchased at a relatively undemanding 6x EBITDA,equating to roughly a 6% to 7% free cash flow yield.

From Third Avenue Management's semi-annual 2013 commentary.


Check out Third Avenue Management latest stock trades

Top Ranked Articles about Ascena Retail Group Inc

Weekly 3-Year Low Highlights: TNH, ASNA, TDW, AAN
According to GuruFocus list of 3-year lows; Terra Nitrogen Co LP, Ascena Retail Group Inc, Tidewater Inc, and Aaron’s Inc, have all reached their 3-year lows. Read more...
Ascena Retail Group with 8% Free Cash Flow Yield
It is no secret that the retail environment is brutal nowadays. However, the current earning disappointments present great investment opportunities for those investors willing to look through the current headwinds. In fact, everything goes through a cycle, and the retail industry is just going through a down cycle. Today, I would like to share my new finding, Ascena Retail Group (ASNA). It is a retailer with a focus on female shoppers and a 40% upside potential, even under my conservative assumptions. I believe that this investment is worth exploring further, and my analysis below should help provide more insight. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 15.00
ASNA's P/E(ttm) is ranked higher than
82% of the 1210 Companies
in the Global Apparel Stores industry.

( Industry Median: 21.70 vs. ASNA: 15.00 )
ASNA' s 10-Year P/E(ttm) Range
Min: 5.74   Max: 152.07
Current: 15

5.74
152.07
P/B 1.10
ASNA's P/B is ranked higher than
79% of the 1210 Companies
in the Global Apparel Stores industry.

( Industry Median: 1.97 vs. ASNA: 1.10 )
ASNA' s 10-Year P/B Range
Min: 0.71   Max: 4.23
Current: 1.1

0.71
4.23
P/S 0.40
ASNA's P/S is ranked higher than
78% of the 1210 Companies
in the Global Apparel Stores industry.

( Industry Median: 0.79 vs. ASNA: 0.40 )
ASNA' s 10-Year P/S Range
Min: 0.3   Max: 1.37
Current: 0.4

0.3
1.37
EV-to-EBIT 9.23
ASNA's EV-to-EBIT is ranked higher than
86% of the 1210 Companies
in the Global Apparel Stores industry.

( Industry Median: 16.23 vs. ASNA: 9.23 )
ASNA' s 10-Year EV-to-EBIT Range
Min: 2.9   Max: 51.4
Current: 9.23

2.9
51.4
PEG 2.12
ASNA's PEG is ranked higher than
83% of the 1210 Companies
in the Global Apparel Stores industry.

( Industry Median: 9999.00 vs. ASNA: 2.12 )
ASNA' s 10-Year PEG Range
Min: 0.16   Max: 488.85
Current: 2.12

0.16
488.85
Shiller P/E 13.30
ASNA's Shiller P/E is ranked higher than
91% of the 1210 Companies
in the Global Apparel Stores industry.

( Industry Median: 39.36 vs. ASNA: 13.30 )
ASNA' s 10-Year Shiller P/E Range
Min: 7   Max: 43.9
Current: 13.3

7
43.9
Current Ratio 1.46
ASNA's Current Ratio is ranked higher than
68% of the 1166 Companies
in the Global Apparel Stores industry.

( Industry Median: 1.55 vs. ASNA: 1.46 )
ASNA' s 10-Year Current Ratio Range
Min: 1.05   Max: 3.31
Current: 1.46

1.05
3.31
Quick Ratio 0.59
ASNA's Quick Ratio is ranked higher than
61% of the 1166 Companies
in the Global Apparel Stores industry.

( Industry Median: 0.84 vs. ASNA: 0.59 )
ASNA' s 10-Year Quick Ratio Range
Min: 0.28   Max: 1.95
Current: 0.59

0.28
1.95

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 2.72
ASNA's Price/Tangible Book is ranked higher than
67% of the 1210 Companies
in the Global Apparel Stores industry.

( Industry Median: 2.92 vs. ASNA: 2.72 )
ASNA' s 10-Year Price/Tangible Book Range
Min: 1.01   Max: 10.51
Current: 2.72

1.01
10.51
Price/DCF (Projected) 0.63
ASNA's Price/DCF (Projected) is ranked higher than
92% of the 1210 Companies
in the Global Apparel Stores industry.

( Industry Median: 2.17 vs. ASNA: 0.63 )
ASNA' s 10-Year Price/DCF (Projected) Range
Min: 0.57   Max: 1.52
Current: 0.63

0.57
1.52
Price/Median PS Value 0.57
ASNA's Price/Median PS Value is ranked higher than
92% of the 1210 Companies
in the Global Apparel Stores industry.

( Industry Median: 1.03 vs. ASNA: 0.57 )
ASNA' s 10-Year Price/Median PS Value Range
Min: 0.53   Max: 1.54
Current: 0.57

0.53
1.54
Price/Peter Lynch Fair Value 1.27
ASNA's Price/Peter Lynch Fair Value is ranked higher than
88% of the 1210 Companies
in the Global Apparel Stores industry.

( Industry Median: 9999.00 vs. ASNA: 1.27 )
ASNA' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.53   Max: 4.67
Current: 1.27

0.53
4.67
Price/Graham Number 1.31
ASNA's Price/Graham Number is ranked higher than
79% of the 1210 Companies
in the Global Apparel Stores industry.

( Industry Median: 2.31 vs. ASNA: 1.31 )
ASNA' s 10-Year Price/Graham Number Range
Min: 0.69   Max: 2.66
Current: 1.31

0.69
2.66
Earnings Yield (Greenblatt) 10.80
ASNA's Earnings Yield (Greenblatt) is ranked higher than
82% of the 1071 Companies
in the Global Apparel Stores industry.

( Industry Median: 7.50 vs. ASNA: 10.80 )
ASNA' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1.9   Max: 34.1
Current: 10.8

1.9
34.1
Forward Rate of Return (Yacktman) 17.81
ASNA's Forward Rate of Return (Yacktman) is ranked higher than
82% of the 962 Companies
in the Global Apparel Stores industry.

( Industry Median: 9.24 vs. ASNA: 17.81 )
ASNA' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 0.9   Max: 56.6
Current: 17.81

0.9
56.6

Business Description

Industry: Retail - Apparel & Specialty » Apparel Stores
Compare:IDEXY, ARO, TJX, FRCOF, ROST » details
Traded in other countries:AHR.Germany
Ascena Retail Group, Inc. is a Delaware corporation. The Company through its subsidiaries operates as a specialty retailer of apparel for women and tween girls. The company offers apparel, accessories, footwear, and lifestyle products, such as bedroom furnishings and electronics. The Company's main retail brands which include: Justice, Lane Bryant, maurices, dressbarn and Catherines. The Company operates approximately 3,800 stores throughout the United States, Puerto Rico and Canada. It classifies its businesses into five segments following a brand-oriented approach: Justice, Lane Bryant, maurices, dressbarn and Catherines. The Justice segment includes approximately 942 specialty retail and outlet stores, e-commerce operations, and certain licensed franchises in international territories. The Justice brand offers fashionable apparel to girls who are ages 7 to 14 in an environment designed to match the energetic lifestyle of tween girls. The Lane Bryant segment includes approximately 805 specialty retail and outlet stores, and e-commerce operations. The Lane Bryant brand offers fashionable and sophisticated plus-size apparel under multiple private labels to female customers in the 35 to 55 age range. The maurices segment includes approximately 832 specialty retail and outlet stores, and e-commerce operations. The maurices brand offers up-to-date fashion designed to appeal to the 17 to 34 year-old female, with stores concentrated in small markets (approximately 25,000 to 100,000 people). The dressbarnsegment includes approximately 827 specialty retail and outlet stores, and e-commerce operations. The dressbarn brand mainly attracts female consumers in the mid-30 to mid-50's age range and offers moderate-to-better quality career, special occasion and casual fashion to the working woman. The Catherines segment includes approximately 422 specialty retail and outlet stores, and e-commerce operations. The Catherines brand offers classic apparel and accessories for wear-to-work and casual lifestyles in a full range of plus sizes, generally catering to the female customer 45 years and older. The Company's main competitors are Walmart, Macy's, JCPenney, Kohl's, Old Navy, Aeropostale, Target and Sears. The Company is subject to general business regulations and laws, as well as regulations and laws specifically governing the Internet and e-commerce.
» More Articles for ASNA

Headlines

Articles On GuruFocus.com
Staying Away From This Specialty Retailer Is the Only Option Oct 20 2014 
Urban Outfitters' Price Touched Its 52- Week Level; And Now? Oct 20 2014 
Weekly 3-Year Low Highlights: TNH, ASNA, TDW, AAN Oct 19 2014 
Ascena Retail Group with 8% Free Cash Flow Yield Sep 24 2014 
Can A Struggling Ascena Make a Comeback? Apr 07 2014 
Drill Down on Dreman - Five Sold Out Sep 20 2013 
Third Avenue Management Comments on Ascena Jul 02 2013 
Weekly CFO Sells Highlight: PII, ASNA, FIO, VVUS, AFFY Jul 23 2012 
President & CEO of Ascena Retail David R Jaffe sold 433,600 shares Jun 23 2012 
Weekly Top Insider Buys: BAC, IVZ, AKAM, ASNA, URS Jun 17 2012 

More From Our Partners
Ascena Unveils 2 Lane Bryant Outlets in Texas, Iowa - Analyst Blog Oct 17 2014 - ZACKS

More From Other Websites
Ascena Retail Group, Inc. Announces Michael Rayden’s Retirement Oct 20 2014
Ascena (ASNA) Adds 1 Remodeled & 3 New dressbarn Stores Oct 20 2014
Ascena Retail Group, Inc. Announces Michael Rayden’s Retirement Oct 20 2014
Weekly 3-Year Low Highlights: TNH, ASNA, TDW, AAN Oct 19 2014
Ascena Unveils 2 Lane Bryant Outlets in Texas, Iowa Oct 17 2014
Newest dressbarn Creates Fashion Destination for Seabrook Shoppers Oct 17 2014
dressbarn of Westminster Celebrates Grand Reopening Oct 17 2014
Newest dressbarn Creates Fashion Destination for Hudson Shoppers Oct 17 2014
Newest dressbarn Creates Fashion Destination for Elko Shoppers Oct 17 2014
It's Time to Celebrate! You Are Invited to the Grand Opening of Lane Bryant's New Location at Tanger... Oct 16 2014
It's Time to Celebrate! You're Invited to the Grand Opening of Lane Bryant's New Location at East... Oct 16 2014
Ascena Expands maurices Chain by Adding Twelve New Outlets Oct 15 2014
maurices Ramps Up Store Openings in Time for The Holidays Oct 14 2014
Ascena Continues Expanding Store Base across all Brands Oct 13 2014
Newest dressbarn Creates Fashion Destination for Lakeland Shoppers Oct 10 2014
Ascena's Lane Bryant to Open New Cacique Lifestyle Store Oct 08 2014
It's Time to Celebrate! You Are Invited to the Grand Opening of Lane Bryant's New Location at... Oct 08 2014
It's Time to Celebrate! You Are Invited to the Grand Opening of Lane Bryant's New Location at... Oct 08 2014
Lane Bryant Announces Unique Cacique Lifestyle Location in Jersey City, NJ Oct 07 2014
Ascena Adds 3 More Stores to Lane Bryant Chain Oct 06 2014

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