ASNA
#We, certainly, have some impact from the storms from late in January, but I'd also say that, as you know from where we pre-announced at ICR, that things actually strengthened quite a bit from what we were expecting from a margin standpoint.
So we did start to see some significant strengthening at the LOFT business, and we also saw Justice came in above where we'd hoped.
So they were able to release some margin hedge that they had in their numbers.
The business actually did start to strengthen mid-January, so regardless of the comps through holiday, we were very pleased with how we came out of January.
In terms of the port issues, this quarter benefited from about $8 million both at Ann and at the legacy Ascena bands.
There was some benefit in the gross margin rate this quarter from prior year impact.
The total ports probably represented about one quarter of the total gross margin rate improvement from the prior year to this year in the second quarter.
And we had at the legacy Ascena brands roughly, call it a comparable $8 million in the third quarter that was a bit of help.
So hopefully, I think that addresses your questions.
And Q3 comp guidance.
I'm sorry, I missed the Q3 comp guidance.
What I'll generally tell you is for the spring season, the missy brands are all planned up modestly to up low single digits, and Justice is planned down mid-single.
In the third quarter, that's generally consistent with all the brands, and Justice is planned mid-single.
In the third quarter, that's generally consistent for all the brands.
And again, Justice is high-negative single in the third quarter.
<UNK>, you're on mute.
Yup.
So, <UNK>, we have a portfolio.
It's just like if you're the Magellan fund, you don't talk about this stock or that stock in a lot of detail.
You're saying, I'm investing in great companies, we've got great brands.
There is going to be some movement over the course of the year.
Nobody's plan at the beginning of the year ever holds true to the penny at the end of the year.
What we've seen is that we've got strength across all of our brands, some more than others.
We have all these levers, not just on the top-line but through synergies, through a lot of the programs that we're running to cut costs, et cetera, that are going to enable us to hit our numbers, and while there may be a little bit of softness in one brand, invariably, we've been able to make it up if not more in other areas.
<UNK>, your question on Maurices.
As <UNK> mentioned, the gross margin was actually up quite nicely, up $11 million.
We did have some OpEx growth.
<UNK> mentioned earlier, the marketing test that they're doing, which we're very excited about.
That was a bit of an offset.
They continued to build out new stores, which, again, longer-term, wonderful profit drivers in those stores and new openings are all achieving or beating expectations.
They did have a benefit last year with the sale of the Des Moines distribution center when they came into Green Castle that unfavorably impacted this year on a year on year compare basis.
Product is really resonating there.
Brand is still tracking, very happy with where things are.
Sure.
We have a really strong ability to generate cash.
And with this cash, as we've said all along, we really want to pay down our debt.
We'd like to de-lever to a great extent as soon as possible.
So that hasn't changed.
What has changed is, as I'm sure those of you that follow our stock, hopefully all of you do, you've seen this fairly unbelievable selloff, which we don't really understand why, and a subsequent rebound.
Not really sure we understand why that, either.
But what we saw was an opportunity to buy back our stock.
As you may recall, the Board authorized a share repurchase and we started buying back stock.
We are trying to do this in a delicate balance with our debt retirement.
So we want to continue to buy back our debt, or retire our debt, and we want to buy back shares.
We constantly look at where the relative value is, where the opportunities are.
We've been able to buy back our stock ---+ I'm sorry, our debt on the open market at below par, and that creates, obviously, significant savings.
So we're doing both, <UNK>, and we'll continue to do both very thoughtfully, and each month, each season, you know, we'll be looking at this.
We look at it carefully with the Board and try and determine what that right balance is.
But I would tell you that it's at least ---+ always going to be at least [50%] will be going down to pay down debt.
Thanks, <UNK>.
Well, it doesn't mean anything in terms of our guidance.
Easter, as I've mentioned, is a huge week for us.
For our missy brands, it's really our Christmas.
We are ready to go, and you tell me what the weather is, and I'll tell you how strong our business is going to be.
You know, it's one of those old adages.
If it's cold and snowy or rainy, women aren't going to run out get a new dress to wear on Easter.
If it's sunny and beautiful, they will.
Obviously, that's an overstatement, gross overstatement on either side.
But at the margin, it is accurate, and we're looking forward to some decent weather.
Obviously, the milder winter we're having and the outlook for the next three weeks is encouraging, but until we get there, obviously, we'll never know.
Yes.
That's for sure, but I'd probably take it a step further.
Rather than say more normal, I'd say it's been unseasonably mild.
That's helped a lot.
So when you look at any of these historical weather things, generally, it's been a warmer February across the country.
And while there have been weeks up and down, where we have seen unseasonably warm weather, we have seen improved traffic.
Thank you.
I'd just thank everyone for their attention and appreciate your support of Ascena, and we look forward to talking again next quarter.
Everyone have a good evening.
Thank you.
