Ann Inc. Earnings Cheat Sheet: Profit Rises Year Over Year

Ann Inc. (NYSE:ANN) reported net income above Wall Street’s expectations for the first quarter. Ann, Inc. offers a range of career and casual separates, dresses, tops, weekend wear, shoes and accessories to provide modern styles that are versatile across all occasions and needs.

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Ann Earnings Cheat Sheet for the First Quarter

Results: Net income for Ann Inc. rose to $27.3 million (51 cents/share) vs. $22.6 million (38 cents/share) in the same quarter a year earlier. A rise of 20.8% from the year earlier quarter.

Revenue: Rose 10% to $523.6 million YoY.

Actual vs. Wall St. Expectations: ANN beat the mean analyst estimate of 48 cents/share. Estimates ranged from 43 cents per share to 51 cents per share.

Quoting Management: Kay Krill, President and CEO, commented, “ANN INC. delivered a very strong first quarter performance, achieving significant double-digit growth in sales, earnings and earnings per share. We are particularly gratified that this performance came on top of very strong results in last year’s first quarter, as comparable sales for the Company rose 8% on top of last year’s 14% increase, with both the Ann Taylor and LOFT brands delivering positive comparable sales.”

Key Stats:

Gross margin shrunk 2.1 percentage points to 57.3%. The contraction appeared to be driven by rising costs as the figure rose 15.7% from the year earlier quarter while revenue rose 10%.

Revenue has risen the past four quarters. Revenue increased 9.8% to $515.3 million in fourth quarter of the last fiscal year. The figure rose 9.3% in third quarter of the last fiscal year from the year earlier and climbed 2.8% in second quarter of the last fiscal year from the year-ago quarter.

Competitors to Watch: New York & Company, Inc. (NYSE:NWY), Coldwater Creek Inc. (NASDAQ:CWTR), Christopher & Banks Corp. (NYSE:CBK), The Talbots, Inc. (NYSE:TLB), Charming Shoppes, Inc. (NASDAQ:CHRS), Chico’s FAS, Inc. (NYSE:CHS), Ascena Retail Group Inc (NASDAQ:ASNA), Limited Brands, Inc. (NYSE:LTD), bebe stores, inc. (NASDAQ:BEBE), Nordstrom (NYSE:JWN), Coach (NYSE:COH), J.C. Penney (NYSE:JCP), Target (NYSE:TGT) and Body Central Acquisition Corp. (NASDAQ:BODY).

Stock Performance: Shares of ANN are down over 5% from the previous close of $30.20.

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