Ascena Retail Group, Inc. reported unaudited consolidated earnings results for the first quarter ended October 28, 2017. For the quarter, the company reported GAAP earnings of $0.03 per diluted share compared to GAAP earnings of $0.07 per diluted share in the year-ago period. The decrease was primarily driven by the comparable sales decline of 5%. The company reported non-GAAP adjusted earnings of $0.11 per diluted share compared to non-GAAP adjusted earnings of $0.18 per diluted share in the year-ago period. Net sales were $1.590 billion compared to $1.678 billion in the year-ago period. The decrease in sales reflected the impact of a 5% comparable sales decline, which was caused primarily by a mid-single digit decline in average selling price, offset in part by double digit transaction growth in the direct channel. Operating income was $40 million compared to operating income of $51 million in the year-ago period. Net income was $7 million compared to net income of $14 million in the year-ago period. Capital expenditures totaled $51 million in the first quarter of fiscal 2018, primarily to support new capabilities and strategic initiatives. Income before provision for income taxes was $13.5 million compared to $25.8 million a year ago. Total non-GAAP adjusted operating income was $68.9 million compared to $86.1 million a year ago. Non-GAAP Net income was $21.0 million compared to $36.0 million a year ago. Adjusted EBITDA was $156 million compared to $172.2 million a year ago. Non-GAAP Net Sales were $1,589.8 million compared to $1,679.1 million a year ago.

For the quarter, the company reported impairment of assets of $1.1 million.

For the fiscal year 2018 second quarter, the company's non-GAAP loss per share is estimated in the range of $0.12 to $0.07. Net sales expected to be in the range of $1.62 billion to $1.66 billion; Comparable sales in the range of down 4% to down 6%; Gross margin rate in the range of 55.0% to 55.5%;Depreciation and amortization expense in the range of $87 million to $90 million; Operating loss in the range of $15 million to $0 million. Interest expense expected to be of approximately $26 million.

The company continue to expect full year fiscal 2018 CapEx in the range of $190 million to $220 million.