ascena retail group Provides Additional Business Update on COVID-19

MAHWAH, N.J., May 28, 2020 (GLOBE NEWSWIRE) -- ascena retail group, inc. (Nasdaq: ASNA) (“ascena” or the “Company”) today provided a brief update related to its most recently completed quarter that ended on May 2, 2020.  The estimated 2020 third quarter information presented in this release is preliminary, and is subject to the completion of the Company’s standard procedures for the preparation and completion of its quarterly financial statements. Given that these reviews are ongoing, the Company may make further adjustments as a result of developments occurring between now and the time the financial results are finalized and publicly released. In addition, estimated sales data has been provided to help investors understand and assess the near-term impacts of the coronavirus (“COVID-19”) pandemic, but is subject to variability and may not be indicative of results or trends for any future reporting period.

Carrie Teffner, Interim Executive Chair of ascena commented, “COVID-19 has significantly disrupted our business.  Despite aggressive actions to preserve liquidity, the pandemic has significantly reduced our earnings and cash flow, resulting in increased levels of debt and deferred liabilities.  With retail stores making up the majority of our revenue and cash flow, the uncertainty created by COVID-19 requires us to evaluate all options available to protect the business and its stakeholders.”

Gary Muto, Chief Executive Officer of ascena commented, “We took immediate actions to preserve liquidity and reduce costs in response to the COVID-19 pandemic while continuing to heighten engagement with our customers.  We have successfully leveraged our digital capabilities to respond to the evolving needs of our customers across our portfolio of well-known and beloved brands. As of May 27^th, we have re-opened approximately 450 of our 2,800 stores and will operate in adherence with local regulations as well as health and safety guidelines from the CDC. We look forward to welcoming our customers back to our stores.”

Mr. Muto continued, “The safety of our store associates and customers remain our leading priority as we navigate the challenges presented by COVID-19. We continue to put our associates, customers and community at the center of everything we do and I am extremely thankful to our associates for their commitment and hard work during this extremely difficult period.”