Ann Inc. Earnings Cheat Sheet: Profits Grow by Double Digits Again

Ann Inc. (NYSE:ANN) reported net income above Wall Street’s expectations for the third quarter. Ann 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 Third Quarter

Results: Net income for Ann Inc. rose to $32.3 million (61 cents per share) vs. $24.2 million (41 cents per share) in the same quarter a year earlier. This marks a rise of 33.4% from the year earlier quarter.

Revenue: Rose 11.6% to $564 million from the year earlier quarter.

Actual vs. Wall St. Expectations: ANN beat the mean analyst estimate of 57 cents per share. Analysts were expecting revenue of $566.8 million.

Quoting Management: Kay Krill, President and CEO commented, “By brand, LOFT generated exceptional results, as compelling product and effective marketing drove significantly higher sales and profitability across all LOFT channels. The Ann Taylor brand delivered solid performance, reflecting outstanding results in the e-commerce channel, solid performance in the factory channel and softer-than-expected sales in the stores channel.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 33.2% and in the first quarter, the figure rose 20.8%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 2 cents in the second quarter, by 3 cents in the first quarter, and by 2 cents in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 15.5% to $558.2 million in the second quarter. The figure rose 10% in the first quarter from the year earlier and climbed 9.8% in the fourth quarter of the last fiscal year from the year-ago quarter.

Gross margins grew 0.3 percentage point to 57.5%. The growth seemed to be driven by increased revenue, as the figure rose 11.6% from the year earlier quarter while costs rose 10.7%.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is 31 cents per share, up from 25 cents ninety days ago. For the fiscal year, the average estimate has moved up from $1.79 a share to $1.87 over the last ninety days.

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), and Body Central Acquisition Corp. (NASDAQ:BODY).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)