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BRIEF-Ascena Retail says restructured its business into 4 operating segments
October 4, 2016 / 10:16 PM / a year ago

BRIEF-Ascena Retail says restructured its business into 4 operating segments

Oct 4 (Reuters) - Ascena Retail Group Inc

* Ascena retail group inc says begins execution phase of its major enterprise transformation plan

* Reschedules investor day to january 18, 2017

* Ascena retail group inc says announced creation of its new ascena brand services (abs) team

* Restructuring will result in a pre-tax charge of approximately $10 to $12 million in q1

* Additional charges are expected in future related to ongoing transformation work

* Gary muto, president and ceo of company’s ann brands, will retain responsibility for ann taylor, loft, and lou & grey brands

* Expects to recover majority of restructuring charge in form of reduced operational expenses over course of fiscal 2017

* Expects additional $100 - $150 million in cost savings by fiscal 2019

* Expects its new change for growth program will deliver an incremental $100 - $150 million of cost savings by fiscal 2019

* Restructuring has been accompanied by a number of executive departures to eliminate organizational overlap

* Says restructured its business into four operating segments

* Brian lynch, most recently president and ceo of justice brand, will assume direct responsibility for ascena brand services in his role as coo

* Ahead of plan with synergy,cost savings workstreams that will deliver $235 million of cost savings associated with integration of ann inc

* Restructuring related changes not added in co’s guidance;sees recovering majority of charge through lower operational costs over 2017 Source text for Eikon: Further company coverage:

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