Shares of Ascena Retail Group plummeted more than 29 percent Tuesday after it missed its fourth-quarter profit forecasts, which follows a loss in the same period last year. It also gave weaker-than-expected guidance for fiscal 2017.
The New Jersey-based company on Monday posted fiscal-fourth-quarter earnings of 8 cents per share on revenue of $1.81 billion. Analysts had expected 16 cents a share on revenue of $1.77 billion, according to Thomson Reuters.
The company expects full-year fiscal 2017 earnings in the range of 60 cents to 65 cents a share. Revenue is expected in the range of $6.9 billion to $7 billion. Analysts expected a profit of 83 cents per share on revenue of $7.17 billion, according to Thomson Reuters.
David Jaffe, CEO of Ascena, said the results are due to "a highly competitive selling environment and significant store traffic headwinds."
"While we are seeing good customer demand during peak periods, off-peak demand has been inconsistent, and fourth-quarter financial performance fell well below our expectations," he said, in a statement.
For the year, it reported a loss of $11.9 million. Its same-store sales fell 4 percent for the quarter.
With Tuesday's losses, the stock is down more than 42 percent this year.