This year, our most signifi cant integration project
was to optimize our distribution infrastructure.
We expanded our retail distribution center in Etna,
Ohio, and transitioned our Catherines and Lane Bryant
brands into it in early Spring. All fi ve brands are now
operating in this facility, with our fi nal brand, maurices,
having just completed its transition in September.
We also commenced fulfi llment operations out of our
new e-commerce distribution center in Greencastle,
Indiana in June. We leveraged the combined volume
of these two facilities to drive cost savings through
negotiation of new freight contracts. Our consolida-
tion into these state-of-the-art facilities puts us on a
clear path to annual synergy savings of approximately
$50 million, a run rate we expect to reach in mid-
calendar year 2015.
ELLIOT S. JAFFE
Co-Founder and
Non-Executive Chairman
DAVID JAFFE
President and
Chief Executive Offi cer
Our Fiscal 2014 fi nancial performance refl ects the
the tween market and increased markdowns required
ongoing transition to our new operating platform and
to achieve year-end inventory targets.
includes signifi cant non-recurring costs (i.e. integration
expenses) and an increase in non-cash depreciation
Moving into Fiscal 2015, we plan to increasingly focus
expense which comes in advance of the benefi ts and
on EBITDA as an important indicator of our under-
cost savings to come from related infrastructure
lying fi nancial performance because it normalizes for
investments. Our results also refl ect a retail environ-
major changes in non-cash depreciation and eff ective
ment characterized by soft traffi c, a lack of item-driven
tax rate that will unfavorably impact our performance
merchandise trends and continued pressure on our
during this period of transition.
consumers’ discretionary spending.
We expect each of our brands to see clear benefi ts in
For the full year, we had fl at total comparable sales
cost and improved focus in their respective organiza-
performance, including both the store and e-com-
tions as we complete the implementation of our shared
merce channels. Income from continuing operations
services structure. This platform is designed to enable
was down 11% to $138M. The decline in income from
our teams to concentrate on our customers and to
operations was primarily caused by performance at our
deliver unmatched levels of value and fashion. At the
Justice brand, which faced continued headwinds in
brand level, our teams will be able to devote increased
attention to the customer-facing functions that define
Fiscal 2013. While we remain the market share leader
their identities, expand their market opportunity and
in the tween category, we needed to utilize a higher
drive their business forward.
level of markdowns to clear inventory through the
year. Total comp performance was down 4% for the
We continue to see the lines between retail channels
year, but should improve with new merchandising
blurring, and we plan to address this by providing a
and marketing strategies, including reduction of the
seamless customer experience, through omnichannel
number of store-wide promotions in favor of a more
shopping. Our consumer shops at the mall and online
targeted approach to our best customers. For the year,
and researches her purchases before she makes them.
we opened 49 stores, including 12 in Canada, and
Embracing an omnichannel philosophy helps ensure
closed 23 stores.
our consumer has a positive experience, regardless of
how she chooses to shop with us.
We remain deeply engaged in the areas of our business
that we can control. This kind of focus is essential, as
the tough retail environment has clearly underlined. We
are working to plan effectively, tightly manage inven-
tory, optimize our merchandising assortments and
deploy appropriate promotional strategies. A strong,
tactical approach to market conditions continues to be
necessary as we address near-term challenges while
making progress on our long-term, platform-oriented
strategy. We continue to work toward a future that
will provide tremendous value for our customers and
our shareholders.
Justice
Our Justice business is coming off a challenging
year, with operating income down significantly from
Lane Bryant
Lane Bryant finished the year with a moderate
operating loss, but performance was significantly
improved compared to Fiscal 2013. For the year, total
comp performance was up 3%. Cacique intimates
continued to perform well, and our activewear cate-
gory yielded double-digit growth. Entering Fiscal
2015, we are planning continued strong growth in
our active and wear-to-work categories. We are also
introducing our 6th & Lane Collection, which expands
the top of our private-label fashion pyramid. On store
development, we opened 36 new stores and closed 53
stores as part of our continuing strategy to reposition
our fleet.
We remain deeply engaged in the areas of our business that we can control. This
kind of focus is essential, as the tough retail environment has clearly underlined.
We are working to plan effectively, tightly manage inventory, optimize our
merchandising assortments and deploy the appropriate promotional strategies.
maurices
maurices operating income performance was down
Catherines
Catherines continues to perform well, with operating
compared to last year, primarily due to a one-time
income growth of over 100% from Fiscal 2013. Our
non-cash impairment related to the exit of one of
total comp performance for the year was up 8%, with
the brand’s private labels coupled with significant
both e-commerce and store channel gains. We have
investments made in the brand’s buying and product-
seen 13 straight quarters of comp growth. Inventory
development functions to support future growth.
flow strategies supported key floorsets and ensured
Total comp performance for the year was up 1% driven
seasonal wear-now product was in stock throughout
by strong e-commerce activity. We continue to deliver
key transitional periods. This merchandising strategy
an elevated level of fashion to the brand and are intro-
delivered higher sales and improved inventory turns
ducing maurices InMotion, new activewear collection,
and margins. Through the year, we continue to be
in the coming year. We also have continued our efforts to
very pleased with the progress Catherines is making
deepen our direct-sourcing strategy, approaching
in terms of sales and profit growth. We ended the year
20% by the close of Fiscal 2014. During the year, we
with 386 stores in our fleet.
opened 55 stores, including 12 in Canada, and closed
10 stores.
We thank our stockholders and suppliers for their
continued support, as well as our talented team
members and associates for their dedication and
execution on our continued infrastructure projects.
We remain confident that the unique and scalable
model we are creating positions us well to better serve
our customers, enhance our business and deliver
sustainable growth and profits to our stockholders.
dressbarn
This year, dressbarn operating income grew 30%, driven
by effective inventory management and gross margin
improvement. While our total comp performance was
down 1% for the year, the decline was caused by a lower
level of clearance selling in the back half of the year.
Full-price selling was up nicely, and over the course of
the year, we refined our merchandising and served our
customers well. We continue to reposition our fleet for
future growth, having opened 34 stores and closed 40.
Crisis Relief
Matching Gifts
When Bad Things Happen to Good People
We know the impact something like a fire, tornado,
Matching Gifts
Our associates make a difference every day. With their
chemical spill or flood can have on our customers
gift of time or money, our associates have the power to
and associates. We are committed to the communities
change a life. The Matching Gifts program makes even
we serve and when disasters happen, we partner with
more change possible.
local communities to help make a difference.
Roslyn S. Jaffe Awards
Associate Scholarship Program
PERFORMANCE IN FY 2014
PERFORMANCE IN FY 2014
Total Scholarships Awarded: 45
The Roslyn S. Jaffe Awards
2014 marks the first year of the Roslyn S. Jaffe Awards.
A Bright Future
We believe in the importance of education. Our brands,
Roslyn Jaffe, co-founder of dressbarn in 1962, had a
the Jaffe Family Foundation and the Ascena Foundation,
motto: “When life gives you lemons, make lemonade.”
offer a scholarship program that benefits our associates
This award, in her honor, offers sizable grants to
and their high-school senior or college dependents.
everyday heroes who are making the world a better
place for women and children.
Since the program was started in 1997, we have helped
more than 500 students go to college.
In the first year alone, more than 1,000 applications
were submitted! The applicants were reviewed by
members representing the brands/SSG as well as an
esteemed external selection committee.
Winners were celebrated during a luncheon in October
in NYC hosted by Soledad O’Brien. We will launch the
awards again in FY 2015.
For more information, visit www.ascenacares.com
2014 Financial Highlights
(dollars in millions, except per-share amounts)
OPERATING RESULTS
2014
2013
2012
Net sales
$4,790.6
$4,714.9
$3,353.3
Operating income
210.8
265.3
292.6
Net income*
138.2
155.2
171.8
Net income as a percent of net sales *
2.9%
3.3%
5.1%
Net income per common share - diluted*
$0.84
$0.95
$1.08
FINANCIAL POSITION
2014
2013
2012
Working capital
$291.7
$306.3
$325.6
Total assets
3,123.8
2,871.7
2,807.1
Total equity
1,737.7
1,556.4
1,340.9
Number of stores at end of fiscal period
3,896
3,859
3,828
Total gross square footage (in millions)
21.2
21.0
20.8
*Represents net income from continuing operations only.
DIRECTORS, OFFICERS AND KEY MANAGEMENT
1 Member, Compensation and Stock Incentive Committee
2 Member, Audit Committee
3 Member, Nominating Committee
DIRECTORS
Elliot S. Jaffe
Co-Founder & Non-Executive Chairman
David Jaffe
President & Chief Executive Officer
Kate Buggeln 1,2
Governing Board, Business Council for Peace
John Usdan 1,2,3
President, Midwood Management Corporation
Klaus Eppler 3
Pensioned Partner, Proskauer Rose LLP
Randy L. Pearce 1,2
President, Regis Corporation (Retired)
Roslyn S. Jaffe
Co-Founder, Secretary & Director Emeritus for Life
Michael W. Rayden
President & Chief Executive Officer, Justice
ASCENA RETAIL GROUP, INC.
Elliot S. Jaffe
Co-Founder & Non-Executive Chairman
David Jaffe
President & Chief Executive Officer
John Sullivan
EVP, Chief Operating Officer
Ronnie Robinson
President, Ascena Global Sourcing
JUSTICE
Michael W. Rayden
President & Chief Executive Officer
Scott Bracale
President, Agency
Rolando de Aguiar
EVP, Chief Financial Officer
LANE BRYANT
Linda Heasley
President & Chief Executive Officer
Lou Ann Bett
EVP, Chief Merchandising Officer
Scott Glaser
SVP, Chief Financial Officer
MAURICES
George Goldfarb
Brand President
Erin Stern
EVP, Chief Merchandising Officer
Sue Ross
EVP, Human Resources
DRESSBARN
Jeff Gerstel
Brand President
Judi Langley
EVP, Chief Merchandising Officer
John Pershing
EVP, Human Resources
Ernest LaPorte
SVP, Chief Accounting Officer
David L. Johns
SVP, Chief Information Officer
Gene Wexler
SVP, General Counsel
Steve Daley
SVP, Distribution Services
Jeffrey Liss
SVP, Digital Services
Kirk Simme
SVP, Credit
Robb Giammatteo
SVP, Financial Planning & Investor Relations
John Lee
SVP, Controller & Chief Accounting Officer,
Charming Shoppes
Lece Lohr
EVP, Chief Merchandising Officer
Alan Hochman
SVP, Real Estate & Store Planning
Chris Kaighn
SVP, Stores & Store Operations
Theresa Sullivan
SVP, Human Resources
Sandra Tillet
SVP, Stores, Cacique
Jeffrey Parisian
SVP, Real Estate
Brian Rogers
SVP, Human Resources
Christine Williams
SVP, Planning & Allocation
Stefan von Zastrow
VP, New Business Development & Strategy
George Hanson
VP, E-Commerce
Ali Wing
Chief Marketing Officer, EVP of Digital Commerce
Neil McPhail
SVP, Stores
Mike Herrick
SVP, Planning & Allocation
Brian Thun
SVP, Chief Financial Officer
Lori Wagner
EVP, Chief Marketing Officer & E-Commerce
Ben Moore
SVP, Store Development
Gil Dennis
SVP, Stores
Robin Gray
SVP, Planning & Allocation
Elise Jaffe
SVP, Real Estate
Raana Zia
SVP, Chief Financial Officer
Adrienne Shelton
VP, DMM
Stephanie Nanz
VP, Planning & Allocation
Mark Mueller
VP, Real Estate
CATHERINES
Joan Munnelly
SVP, Co-Leader & Chief Merchandising Officer
Brett Schneider
SVP, Co-Leader &Finance & Operations
Chip Mardis
VP, Human Resources
Kate McKee-Weist
VP, Design/Product Development
Brad Orloff
VP, Marketing
Susan Reiman
VP, Stores
Joe Long
VP, Finance
Robert Egan
VP, DMM
Corporate Information
THE ANNUAL MEETING
The Annual Meeting of Stockholders of the Company will be held:
Thursday, December 11, 2014, 3:30 p.m.
Stage Street Café, dressbarn
933 MacArthur Boulevard
Mahwah, NJ 07430
FORM 10-K
To view this annual report online visit ascenaretail.com. A copy of the Company’s
Annual Report on Form 10-K for the fiscal year ended July 26, 2014, will be provided
to stockholders upon written request to:
Investor Relations
Ascena Retail Group, Inc.
933 MacArthur Boulevard
Mahwah, NJ 07430
TRANSFER AGENT & REGISTRAR
(for registered stockholders)
Communications concerning stockholder records, the transfer of
shares, lost certificates or change of address should be directed to:
American Stock Transfer & Trust Company, LLC
6201 15th Avenue
Brooklyn, NY 11219
Beneficial Stockholders (shares held by your broker in the name of the
brokerage house) should direct questions to their broker.
INDEPENDENT COUNSEL
Proskauer Rose LLP
Eleven Times Square
New York, NY 10036
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP
100 Kimball Drive
Parsippany, NJ 07054