ANN (ANN) Sees Q4, FY12 Revs Below Consensus
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Financial Fact:
Income tax provision: 9.68M
Today's EPS Names:
FRSB, DGICA, UXIN, More
Financial Fact:
Income tax provision: 9.68M
Today's EPS Names:
FRSB, DGICA, UXIN, More
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ANN, Inc. (NYSE: ANN) expects to report record earnings per share for the full year of fiscal 2012, notwithstanding lower-than-anticipated results for the fourth quarter.
Update on Full Year 2012 Outlook
Based on preliminary results, the Company is providing an update to the full year fiscal 2012 outlook it provided on November 28, 2012, as follows:
Kay Krill, President and Chief Executive Officer, said, "We are pleased that we will be reporting very strong year-over-year results for fiscal 2012. For the full year, we expect to report record earnings per share and double-digit growth in net income. We will also report strong sales and increased operating profit, as well as strong double-digit growth in e-commerce for the year, all of which reflect the benefit of our strategic growth initiatives.
"In terms of the fourth quarter, the drivers of the softer-than-expected results were twofold: First, ANN INC. has a high concentration of sales in the Northeast region, which were negatively impacted by the lingering effects of Hurricane Sandy. In addition, LOFT's fourth-quarter investment in bright colors did not resonate with our clients this holiday season. As a result, promotions at LOFT ramped up in the back half of the quarter, which pressured margins but effectively cleared through Holiday inventories in order to enter the Spring season in a healthy position.
"At Ann Taylor, we were pleased that the brand continued to make meaningful progress, achieving higher sales and gross margin for the quarter, compared with the fourth quarter of 2011. In addition, the factory outlet channel was successful in delivering profitable growth despite soft traffic and comparable sales.
"Looking ahead, we have entered the first quarter with clean inventories at both brands, and we are well positioned to deliver profitable growth in fiscal 2013. We remain focused on continuing the successful roll-out of our strategic initiatives and remain confident that these will drive further long-term growth," she said.
Based on preliminary results, the Company is providing an update to the fiscal fourth quarter 2012 outlook it provided on November 28, 2012, as follows:
Update on Full Year 2012 Outlook
Based on preliminary results, the Company is providing an update to the full year fiscal 2012 outlook it provided on November 28, 2012, as follows:
- Total net sales for fiscal 2012 are now expected to be $2.376 billion, reflecting a total Company comparable sales increase of 3%. (The Street sees sales of $2.39 billion.)
- Gross margin rate performance is expected to be approximately 54.8%.
- Total SG&A expenses are expected to be approximately $1.136 billion.
- The Company's effective annual tax rate is expected to be approximately 39.5%.
- During fiscal 2012, the Company repurchased 4.9 million shares at a total cost of approximately $135 million, resulting in an expected total weighted average diluted share count of approximately 49 million for the full year.
- Capital expenditures are expected to approach $155 million.
Kay Krill, President and Chief Executive Officer, said, "We are pleased that we will be reporting very strong year-over-year results for fiscal 2012. For the full year, we expect to report record earnings per share and double-digit growth in net income. We will also report strong sales and increased operating profit, as well as strong double-digit growth in e-commerce for the year, all of which reflect the benefit of our strategic growth initiatives.
"In terms of the fourth quarter, the drivers of the softer-than-expected results were twofold: First, ANN INC. has a high concentration of sales in the Northeast region, which were negatively impacted by the lingering effects of Hurricane Sandy. In addition, LOFT's fourth-quarter investment in bright colors did not resonate with our clients this holiday season. As a result, promotions at LOFT ramped up in the back half of the quarter, which pressured margins but effectively cleared through Holiday inventories in order to enter the Spring season in a healthy position.
"At Ann Taylor, we were pleased that the brand continued to make meaningful progress, achieving higher sales and gross margin for the quarter, compared with the fourth quarter of 2011. In addition, the factory outlet channel was successful in delivering profitable growth despite soft traffic and comparable sales.
"Looking ahead, we have entered the first quarter with clean inventories at both brands, and we are well positioned to deliver profitable growth in fiscal 2013. We remain focused on continuing the successful roll-out of our strategic initiatives and remain confident that these will drive further long-term growth," she said.
Based on preliminary results, the Company is providing an update to the fiscal fourth quarter 2012 outlook it provided on November 28, 2012, as follows:
- Total Company net sales for the fiscal fourth quarter of 2012 are now expected to be $608 million, reflecting a comparable sales decline of 1%.
- At the Ann Taylor brand, total comparable sales increased 1%, reflecting a comparable sales increase of 5% at Ann Taylor, partially offset by a decline of 7% in the Ann Taylor Factory channel. The Street sees Q4 revs of $624.32 million.
- At the LOFT brand, total comparable sales decreased 2%, reflecting declines of 1% at LOFT and 7% in the LOFT Outlet channel.
- At the Ann Taylor brand, total comparable sales increased 1%, reflecting a comparable sales increase of 5% at Ann Taylor, partially offset by a decline of 7% in the Ann Taylor Factory channel. The Street sees Q4 revs of $624.32 million.
- Gross margin rate for the Company is expected to be 49.0%, an increase of 10 basis points versus the fourth quarter of 2011, but below our initial expectations. This performance reflected a higher-than-anticipated promotional cadence in December and January.
- Selling, general and administrative expenses are estimated to be $297 million.
- During the fiscal fourth quarter, the Company repurchased 1.8 million shares at a total cost of approximately $60 million, resulting in an expected total weighted average diluted share count of approximately 48 million for the fourth quarter.
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