Ascena Retail Group, Inc. reported unaudited consolidated financial results for the third quarter and nine months ended April 29, 2017. For the quarter, the company reported GAAP loss of $5.29 per diluted share compared to net earnings of $0.08 per diluted share in the year-ago period. The loss in the current quarter includes a non-cash pre-tax impairment charge of $1.324 billion (after tax impact of $5.22 per diluted share) to write-down a portion of the Company's goodwill and other intangible assets. Net sales on a GAAP basis for the third quarter of Fiscal 2017 were $1.565 billion compared to $1.669 billion in the year-ago period. The decrease in sales reflected the impact of the 8% comparable sales decline. The company's overall comparable sales decline was caused primarily by store traffic, which was down high single digits to low double digits across the Premium Fashion, Value Fashion and Plus Fashion segments. Operating loss on a GAAP basis for the third quarter of Fiscal 2017 was $1.312 billion compared to operating income of $57 million last year. The decrease reflects the goodwill and other intangible asset impairment charges, the lower operating results discussed above, and a $15.9 million increase in Restructuring and other related charges. The company reported a net loss of $1.031 billion, or $5.29 per diluted share in the third quarter of Fiscal 2017, compared to net income of $15 million last year, or $0.08 per diluted share. Capital expenditures totaled $52 million in the third quarter of Fiscal 2017. The company ended the third quarter of Fiscal 2017 with total debt of $1.669 billion, which consisted of $1.597 billion of the term loan used to acquire ANN and $73 million of borrowings outstanding under the company's revolving credit facility. Non-GAAP operating income was $43.1 million against $78.0 million for the same period of last year. Non-GAAP net income was $9.6 million against $30.0 million for the same period of last year. Non-GAAP diluted net income per common share was $0.05 against $0.15 for the same period of last year. Adjusted EBITDA was $131.8 million against $159.7 million for the same period of last year. Loss before benefit (provision) for income taxes was $1,337.8 million against $30.9 million for the same period of last year.

For the nine months, net sales were $4,991.7 million against $5,183.1 million for the same period of last year. Operating loss was $1,305.3 million against $28.6 million for the same period of last year. Loss before benefit for income taxes was $1,381.3 million against $45.6 million for the same period of last year. Net loss was $1,051.5 million against $25.7 million for the same period of last year. Diluted loss per share was $5.40 against $0.13 for the same period of last year. Non-GAAP operating income was $132.0 million against $249.6 million for the same period of last year. Non-GAAP net income was $31.9 million against $102.9 million for the same period of last year. Non-GAAP diluted net income per common share was $0.16 for the same period of last year. Adjusted EBITDA was $394.3 million against $495.4 million for the same period of last year.

Consistent with its previously disclosed guidance, the company expects to incur a loss on a non-GAAP EPS basis of $0.06 to $0.01 during the fourth quarter of Fiscal 2017 and expects full year Fiscal 2017 non-GAAP EPS in the range of $0.10 to $0.15.

For the quarter, the company announced impairment of goodwill of $596.3 million.