Why Ascena Retail Group Inc. Stock Plunged Today

By Steve SymingtonMarketsFool.com

IMAGE SOURCE: Ascena Retail Group Inc.

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What happened

Shares ofAscena Retail Group Inc.(NASDAQ: ASNA) fell as much as 15.6% early Tuesday and then settled to trade down 11% as of 2:00 p.m. EST after the women's fashion retailer announced disappointing holiday results.

So what

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For the 2016 holiday period from Nov. 19, 2016, through Jan. 2, 2017, Ascena's consolidated comparable sales declined 3.1%, as 2.7% growth in comps from the kids fashion segment and 1.6% growth from Catherines were more than offset by comparable sales declines of 8.2% at Ann Taylor, 1.8% at LOFT, 7.1% from maurices, 4.6% from dressbarn, and 5.1% at Lane Bryant.

In addition, for the combined November and December fiscal periods, Ascena's consolidated comparable sales fell 4.4%.

As Ascena Retail Group CEO David Jaffe said:

Now what

As a result, Ascena now expects an adjusted loss per share of $0.11 to $0.08 for the fiscal second quarter ending Jan. 28, 2017 -- well below its previous guidance for adjusted EPS ranging from a loss of $0.05 per share to break even.Finally, for the full fiscal year ending July 29, 2017, Ascena expects adjusted earnings per share ranging from $0.37 to $0.42, representing a significant reduction from prior guidance for full fiscal-year adjusted earnings per share of $0.60 to $0.65.

All things considered, even with shares down nearly 42% over the past yearbeforetoday's plunge, it's no surprise to see investors taking yet another step back from Ascena Retail Group stock today.

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Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.