Close

ANN, Inc. (ANN) Tops Q3 EPS by 3c, Reiterates Q4 Outlook

November 21, 2014 7:48 AM EST

ANN, Inc. (NYSE: ANN) reported Q3 EPS of $0.72, $0.03 better than the analyst estimate of $0.69. Revenue for the quarter came in at $646.8 million versus the consensus estimate of $648.3 million. ANN, Inc. reaffirmed Q4 guidance..

Total Company comparable sales for the quarter decreased 4.3%, compared to an increase of 3.7% in the third quarter of 2013. At Ann Taylor, total brand comparable sales decreased 6.6%, reflecting a decrease of 4.8% at Ann Taylor, which includes sales results at both Ann Taylor stores and anntaylor.com, and a decline of 10.4% in the Ann Taylor Factory channel. At LOFT, total brand comparable sales decreased 2.9%, reflecting decreases of 3.3% at LOFT, which includes sales results at LOFT stores and LOFT.com, and 1.0% in the LOFT Outlet channel.

The Company reiterated its previously provided outlook for the fiscal fourth quarter of 2014:

  • Total Company net sales for the fiscal fourth quarter of 2014 are expected to be $630 million, reflecting a comparable sales decline in the low-single digits.
  • Gross margin rate for the Company is expected to be 46.5%, which includes the impact of approximately $8 million of incremental air freight costs as a result of labor uncertainty at the West Coast ports.
  • Selling, general and administrative expenses are expected to approach $295 million.
  • The Company's effective tax rate for the fourth quarter is expected to be 41%.
  • Total weighted average diluted shares outstanding for the fourth quarter are expected to be 46.2 million, which includes the effect of participating securities.

The Company updated its previously provided outlook for the full year of 2014:

  • Total net sales are expected to be $2.516 billion, reflecting a total Company comparable sales decline in the low-single digits.
  • Gross margin rate performance is expected to be 51.2%, including the impact of the aforementioned approximately $13 million of incremental air freight costs.
  • Total selling, general and administrative expenses are expected to be $1.155 billion, excluding the aforementioned third quarter pre-tax charge of approximately $5 million related to the closure of Ann Taylor's Madison Avenue store, or $1.160 billion including such charge. Total selling, general and administrative expenses do not include the impact of the separately reported first quarter pre-tax restructuring charge of approximately $17 million.
  • Our full-year effective tax rate is expected to be 39%.
  • Capital expenditures are expected to be approximately $110 million.
  • Total weighted average diluted shares outstanding are expected to be 46.6 million, which includes the effect of participating securities.
  • Total weighted average square footage for fiscal 2014 is expected to increase approximately 2%, reflecting the opening of approximately 50 new stores, partially offset by approximately 45 store closures. The Company expects to have approximately 1,030 stores at fiscal year-end.

For earnings history and earnings-related data on ANN, Inc. (ANN) click here.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Earnings, Guidance, Retail Sales

Related Entities

Earnings