Ascena’s David Jaffe Retiring; Gary Muto Stepping Up

David Jaffe, chairman and chief executive officer of the Ascena Retail Group, has retired from the company and has been succeeded by Gary Muto as ceo. Muto, president and ceo of Ascena Brands, will join the board. In addition, Carrie Teffner has been named interim executive chair of the board. In addition, Brian Lynch, president and chief operating officer, has left the company. Lynch was spearheading the company’s “change for growth” transformation plan, which Jaffe said is on track to deliver a run rate cost savings of $300 million by July. The management shake-up comes amid Ascena’s turnaround efforts. The $6.5 billion company has been struggling with uneven performance across its divisions, which cater to different demographics. While performance improved at Ann Taylor and Loft during the company’s second fiscal quarter ended Feb. 2, there were disappointments at Dressbarn, Justice, Cacique and Lane Bryant. Loft saw double-digit comp sales in merchandise margin growth and comp growth in stores and direct business. Ann Taylor also delivered double-digit comp sales and margin growth for the quarter with comp growth driven by its direct channel. For the fiscal third quarter, Ascena expects a loss per share of 45 cents to 35 cents; net sales of $1.43 billion

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