Moving ahead on its growth path, Ascena Retail Group Inc. ASNA announced the opening of two dressbarn stores and sanctioned a new share buyback program.
The two new dressbarn stores are located in Lubbock and Southaven, one in each city. While the Lubbock outlet is housed at The Promenade at West End, 2910 West Loop 289; the one in Southaven is situated at the Tanger Outlets at 5205 Airways Boulevard.
Shoppers at the aforementioned stores will gain access to designer clothing as well as smart style solutions, while getting personalized wardrobe advice from expert associates on the floor. With its attractive, unique and reasonably priced product assortments, ranging from sizes 4–24, dressbarn intends to enhance customers’ shopping experience.
The company has been focused on expanding its stores for a while now. Earlier in the week, Ascena introduced a dressbarn store in Little Rock, AR. Apart from dressbarn, the company has been implementing the store expansion strategy for its other brands too. Recently, it announced the opening of two Lane Bryant outlets in Ohio and Utah.
Coming back to dressbarn, Ascena currently operates more than 830 dressbarn stores in the U.S. Lane Bryant, on the other hand, operates about 775 full-line and outlet stores in the U.S., targeting plus-size women aged 30 to 45, and caters to women's sizes 14–28. The brand also operates online.
Moving to Ascena’s next announcement, management approved a new share repurchase plan, authorizing to buy back $200 million worth shares. This replaces the company’s current authorization, updated in fiscal 2011, which had buybacks worth roughly $90 million remaining under the program.
This move highlights management’s confidence in its operating performance and anticipated cash flows, which in turn, reflects the company’s healthy financial status and commitment toward enhancing shareholder value.
Zacks Rank
Ascena currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same industry include Abercrombie & Fitch Co. ANF and American Eagle Outfitters, Inc. AEO, each with a Zacks Rank #1 (Strong Buy), and Foot Locker, Inc. FL, carrying a Zacks Rank #2 (Buy).
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