Designers, including burkini creator Aheda Zanetti, are puzzled over the recent backlash.
A decision from a Manhattan bankruptcy court judge is expected later this week.
The company said “lack of clarity across the assortment” was the problem for the quarter.
The retailer’s cleaner stores and faster checkout resulted in better sales for the second quarter and impressed Wall Street.
Ascena stock is getting a boost from the disclosure that institutional buying picked up in the second quarter.
The prototype is slated for early 2017.