ASCENA RETAIL GROUP, INC.

Transcription

1 ASCENA RETAIL GROUP, INC. FORM 8-K (Current report filing) Filed 12/13/12 for the Period Ending 12/11/12 Address 933 MACARTHUR BOULEVARD MAHWAH, NJ, Telephone CIK Symbol ASNA SIC Code Retail-Women's Clothing Stores Fiscal Year 08/03 Copyright 2019, EDGAR Online, a division of Donnelley Financial Solutions. All Rights Reserved. Distribution and use of this document restricted under EDGAR Online, a division of Donnelley Financial Solutions, Terms of Use.

2 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 December 11, 2012 Date of Report (date of earliest event reported) ASCENA RETAIL GROUP, INC. (Exact name of Registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation) (Commission File Number) 30 Dunnigan Drive Suffern, New York (Address of principal executive offices, including zip code) (845) (Registrant s telephone number, including area code) (IRS Employer Identification Number) (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: Written communications pursuant to Rule 425 under the Securities Act (17 CFR ) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR e-4c))

3 Item Regulation FD Disclosure. Ascena Retail Group, Inc. (the Company ) made a presentation at its 2012 Annual Meeting of Stockholders held on Tuesday, December 11, A copy of the slide presentation is furnished as Exhibit 99.1 to this report. The information furnished in Item 7.01 of this report on Form 8-K shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific release in such a filing. Forward Looking Statements This Current Report on Form 8-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of Such forwardlooking statements are subject to certain risks and uncertainties that could cause actual results to differ materially. The Company does not undertake to publicly update or review its forward-looking statements even if experience or future changes make it clear that our projected results expressed or implied will not be achieved. Detailed information concerning a number of factors that could cause actual results to differ materially from the information contained herein is readily available in the Company s other filings with the Securities and Exchange Commission. Item 9.01 Financial Statements and Exhibits. (d) Exhibit No Exhibits. Description 99.1 Slide Presentation dated December 11, 2012

4 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ASCENA RETAIL GROUP, INC. Date: December 12, 2012 By: /s/ Jay Levine Name: Jay Levine Title: Senior Vice President, Chief Accounting Officer and Corporate Controller (Principal Accounting Officer)

5 Annual Shareholder Meeting December 11, 2012 Exhibit 99.1

6 2 unknown our Forward most recent risks Looking and Annual uncertainties, Statements Report on This which Form presentation may 10-K cause and contains Quarterly our actual forward-looking Report results on Form future statements 10-Q periods which to within differ have the materially been meaning filed from with of the the our Private U.S. forecasted Securities results. and Litigation Detailed Exchange Reform information Commission. Act of concerning Forward-looking those risks and statements uncertainties involve are readily known available and in

7 3 are such Historical not non-gaap indicative Financial measures of the Information Company s to the Company s Non-GAAP underlying financial Financial operating results Measures performance. prepared Where in Reference accordance indicated, should certain with be GAAP. financial made 3 to the information Company s herein annual has earnings been presented releases on for a non-gaap all periods for basis. the This nature basis of such adjusts adjustments for items and that for management a reconciliation believes of

8 4 effective Historical at the Financial beginning Information of Fiscal Segment Reference Results Our should historical be made segment to our Current operating Report results on for Form fiscal 8-K years dated 2011 December and , have been 4 recasted to conform to our corporate overhead cost allocation methodology,

9 Annual Shareholders Meeting David Jaffe President & Chief Executive Officer

10 6 Stock A Standout increase Year of 17% The acquisition and integration of Charming Another record year of financial results Store growth at our Brands Continued traction in e-commerce Synergies and leverage through our shared services

11 7 Vision Serve our shareholders and create value by becoming a family of leading retail concepts with $10 billion in sales and top tier profitability.

12 8 Mission Making people feel good about themselves.

13 9 Current Structure Shared Services Group

14 10 Shared Services Organization Structure

15 Rolando de Aguiar EVP, CFO

16 12 Our Mission To enhance a tween s self-esteem by providing them the hot-est fashion and lifestyle products, in a fun environment all at a great value for mom!

17 13 apparel (0.8%) Market (0.1%) market, Share (0.2%) ME (0.1%) 1 May , Flat 100 Source bps 20 NPD 2 bps (80 Group bps) Dotted (10 bps) line (20 3 represents bps) ( bps) Market 4 Share E % 10.9% 510.2% E % 6.1% 4.9% 3.4% E % 10.7% 11.0% % 6.3% 5.0% 3.4% Tween % girls Var 1.0% %

18 14 FY12 Highlights 3rd consecutive year of record sales and operating income Increased marketing sales Active customer file growth Canadian market off to a strong start Strong e-commerce growth

19 15 BD&O FY Financials 15.6% 196 $M 17.0% FY12 (8) FY FY11 bps SG&A FY11 Fav/(Unfav)vs % 297 LY 25.8% Fav/(Unfav)vs. (59) (140 bps) LY EBITDA Comp Sales % 16.4% 8.2% % 15.6% 7.8% % $ % Net OperatingIncome Sales 1,307 1, % 13.7% 140 Gross 12.2% Margin % % % %

20 16 FY13 Strategic Initiatives Continue market domination in Hot-Est, Big-Est & Easy-Est Drive MMU$ E-commerce sales growth New store growth Expand dual-gender concept: Brothers

21 17 Growth Drivers Comp sales New stores E-commerce Brothers expansion

22 Anthony Romano President, Charming Shoppes

23 19 Our Mission Consistently provide our Guest fashionable outfits that fit her, make her look stylish and feel sexy, confident and happy.

24 E-02 Track 4.5% bps) Market (70 2.8% 12 bps) Share Months 2.7% ( % bps) Ending % Untitled bps July 2.2% ( bps) 1.9% E-02 NPD 401.6% bps definition E-02 bps 9.8% Flat of Plus % Untitled bps Size 5.0% (20 (self bps) 35.2% E-02 reported) E % Data 2.6% includes 3.1% 2.2% all Untitled Women s 2.1% E % E-02 Apparel 1.8% 1.8% categories % Var E-02 and 0.3% Untitled Intimate 0.3% 5 (0.1%) Apparel; E-02 (0.7%) does E-02 (0.3%) not include 0.2% 30 Jewelry (0.4%) bps Source: or 0.4% Footwear E-02 The 0.1% NPD Flat 2012 Group/Consumer 10.1% (0.2%) 5.3% 30 Untitled 4.9% bps Panel (10 4.5% 1

25 21 FY12 Highlights Modest comparable store sales increases Significant e-commerce growth Strong expense leverage Improved operating results Joined the ascena family

26 FY % Financials % $M 8 FY12 90 bps FY12 SG&A FY FY % Fav/(Unfav)vs % 7 80 LY bps Fav/(Unfav)vs. EBITDA % LY Comp % Sales 1 2.1% 1.1% OperatingIncome 1.1% 6.4% 6.4% 7 $ 0.7% % Net 3 Sales 0.3% 1, % Results 0.4% Gross are trailing Margin twelve % month 560 proforma. 56.2% (14) (2.5%) BD&O

27 23 FY13 Strategic Initiatives Launched comprehensive rebranding Reposition the fleet Drive multi-channel growth Improve inventory productivity

28 24 Growth Drivers Store relocation and expansion E-commerce Merchandise mix refinement Tighter inventory, markdown management

29 George Goldfarb President, maurices

30 Simply the best hometown specialty store George Goldfarb President Our Mission

31 E-03 Twelve Peer Months Group Comp Ended Sales July E-02 AEO 2012 BKE flat (6%) maurices RUE E-02 Gap KSS ANF WTSLA E-02 ARO JCP Series E-02 10% 6% 2% flat (3%) E-02 (6%) (11%) (1%) BKE E-03 ANF WTSLA RUE JCP E-03 KSS AEO Gap ARO

32 28 FY12 Highlights Strong EBITDA 51 new domestic stores Expanded internationally into Canada Strong e-commerce growth Development of sourcing infrastructure

33 % FY Financials 13.0% (13) $M (40 FY12 bps) FY12 SG&A FY FY % Fav/(Unfav)vs % (26) LY (70 Fav/(Unfav)vs. bps) EBITDA LY 129 Comp 15.1% Sales % 16.7% 1.6% (1) (0.8%) 10.2% OperatingIncome 10.2% $ % Net Sales % % 9.8% Gross (5) (4.6%) Margin % % % BD&O 114

34 30 FY13 Strategic Initiatives Open new stores Grow e-commerce Consistency in merchandise offering Increase direct sourced product Refine markdown management Customer acquisition and retention

35 31 Growth Drivers Comp sales New stores Domestic Canada E-commerce Develop sourcing

36 Jeff Gerstel President, dressbarn

37 33 Our Mission 71 Inspiring women to look and feel beautiful.

38 E-02 (5%) Peer (11%) Group (10%) Comp (8%) Sales E-02 (1%) Twelve (3%) Months CHS ANN Ended M E-03 TJX July JCP 2012 NWY CHS KSS TJX CATO ANN E-02 dressbarn CBK CWTR M KSS CATO E-02 NWY CBK CWTR JCP E E E E-02 7% 6% 5% 4% 4%

39 35 FY12 Highlights Surpassed $1 Billion in annual sales 23 new stores & 4 relocations E-commerce first full year 2% penetration blushperks loyalty program Major organizational changes

40 36 FY12 Highlights Talent Creative Director Merchant organization Field Communication

41 % FY Financials 18.9% (7) $M 20 FY12 bps SG&A FY FY % FY Fav/(Unfav)vs. 27.9% (11) 30 LY bps Fav/(Unfav)vs. EBITDA % LY Comp % Sales (3) 3.4% (3.3%) 3.4% OperatingIncome 1.6% 1.6% $ % 57 Net 5.5% Sales 631, % 987 (6) (9.5%) % Gross Margin % % % BD&O 194

42 38 FY13 Strategic Initiatives Hot-Est in fashion for our target customer Store experience Marketing strategy Accelerating growth Talent

43 39 Growth Drivers Sales growth Comp stores E-commerce expansion New store openings Margin Expansion Design Greater depth per SKU Merchandise enhancements Differentiating service

44 Anthony Romano President, Charming Shoppes

45 41 Our Mission To serve the lifestyle and fit needs of women size 18+ with up-to-date classic outfits inspiring her to look and feel her best.

46 E-02 Track 4.5% bps) Market (70 2.8% 12 bps) Share Months 2.7% ( % bps) Ending % Untitled bps July 2.2% ( bps) 1.9% E-02 NPD 401.6% bps definition E-02 bps 9.8% Flat of Plus % Untitled bps Size 5.0% (20 (self bps) 35.2% E-02 reported) E % Data 2.6% includes 3.1% 2.2% all Untitled Women s 2.1% E % E-02 Apparel 1.8% 1.8% categories % Var E-02 and 0.3% Untitled Intimate 0.3% 5 (0.1%) Apparel; E-02 (0.7%) does E-02 (0.3%) not include 0.2% 30 Jewelry (0.4%) bps Source: or 0.4% Footwear E-02 The 0.1% NPD Flat 2012 Group/Consumer 10.1% (0.2%) 5.3% 30 Untitled 4.9% bps Panel (10 4.5% 1

47 43 FY12 Highlights Healthy comparable store sales increases Significant e-commerce growth Strong expense leverage Improved operating results Launched comprehensive rebranding Joined the ascena family

48 44 53 FY % Financials % $M FY12 bps SG&A FY12 FY % FY Fav/(Unfav)vs. 34.3% LY bps Fav/(Unfav)vs. EBITDA 7 2.4% LY 1 Comp 0.3% 6 Sales NM 3.4% OperatingIncome 3.4% (1.1%)(1) (1.1%) (0.3%) $ %(9) Net (3.0%) Sales 8296 NM 297 Results (1) (0.3%) are trailing Gross twelve Margin month % proforma % (5) (3.1%) BD&O

49 45 database FY13 Strategic Initiatives Drive multi-channel growth Improve inventory productivity Increase direct-sourced product penetration Optimize marketing mix Streamline marketing events & campaigns Leverage CRM

50 46 Growth Drivers E-commerce Merchandise mix refinement Greater penetration of direct-sourced product Tighter inventory, markdown management

51 Shared Services John Sullivan Chief Operating Officer

52 48 Our Mission Support all current and future brand partners to better execute their business plans by providing high quality expertise and cost effective service with passion, integrity and respect. Shared Services

53 49 Finance Accounting Human Resources Business Services Sourcing Distribution & Global Logistics Information Technology Shared Service Capabilities

54 50 FY13 Shared Service Strategies Expand distribution & logistics capability Transform core technology platform Integrate Charming Shoppes

55 51 In-Source and consolidate all e-commerce fulfillment in Greencastle, IN Consolidate all retail shipping into Etna, OH Expand Distribution & Logistics Etna, OH Greencastle, IN

56 54 Consolidate data centers Transform Core Technology Implement new store technology Upgrade merchandising systems Rollout global sourcing systems Develop e-commerce systems Unify financial systems

57 55 Consolidate data centers Transform Core Technology Implement new store technology Upgrade merchandising systems Rollout global sourcing systems Develop e-commerce systems Unify financial systems

58 merchandising systems Rollout global sourcing systems Develop e-commerce systems m Unify financial systems 56 Consolidate data centers Transform Core Technology Implement new store technology Upgrade

59 57 Consolidate data centers Transform Core Technology Implement new store technology Upgrade merchandising systems Rollout global sourcing systems Develop e-commerce systems Unify financial systems

60 58 Legal Integrate Distribution Charming Information Shoppes Technology Finance Accounting Video Communications Tax Treasury Credit Operations Payables Internal Audit Investor Relations Corporate Insurance/Risk Payroll Compensation Benefits HRIS Lease Administration

61 Financial Highlights Armand Correia Chief Financial Officer

62 Integrate Finance Accounting Tax Treasury Credit Payables Internal Investor Corporate Payroll Compensation Benefits HRIS Lease Legal Distribution Information Video 58 Administration Communications Operations Audit Relations Charming Insurance/Risk Technology Shoppes

63 Financial Armand Chief Bryant Catherines Financial Correia Highlights Officer

64 60 FY12 Catherines FY11 FY10 dressbarn maurices Lane Bryant Justice FY FY FY FY13E Sales Growth ($M ) 2,914 3,353 5,020 2,375 FY13E

65 Catherines dressbarn maurices Lane Bryant FY13E Justice FY E-Commerce Growth ($M) FY11 FY13E FY FY11 FY FY

66 62 Catherines maurices FY FY FY FY13E Net Income Growth ($M) Adjusted EPS $0.88 $1.17 $1.34 $1.45-$1.55 GAAP EPS $0.87 $1.05 $1.08

67 63 Long-term Goals Sales annual growth rate of 8% to 10% Operating income % of sales of 12%+ by Year 3 EPS annual growth rate of 10%+

68 64 Net Income EPS Net Sales Comp Sales Gross Margin 1Q FY13 Highlights* $63M $0.39 $1.138B 1% $676M *Adjusted vs Last Year 1Q +21% +18% +7% 15th consecutive quarter of increases +10%

69 65 Summary Diversified portfolio Significant growth opportunities Shared Services Group leverages overhead & drives synergies Strong Balance Sheet and Cash Flow

70 Annual Shareholder Meeting December 11, 2012