Ann Inc. Earnings Cheat Sheet: Booking a Profit Again, Revenues Climb

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

Results: Net income for Ann Inc. rose to $28.7 million (58 cents per share) vs. $27.3 million (51 cents per share) in the same quarter a year earlier. This marks a rise of 5.2% from the year-earlier quarter.

Revenue: Rose 7% to $560.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ann Inc. beat the mean analyst estimate of 51 cents per share. Analysts were expecting revenue of $560.8 million.

Quoting Management: Kay Krill, President and CEO, said, “We are very pleased that our 2012 fiscal year is off to a strong start. We reported an excellent first quarter with significant increases in both sales and earnings per share. Our gross margin rate also improved dramatically from the fourth quarter of 2011, driven by increased profits at both the Ann Taylor and LOFT brands.”

Key Stats:

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by one cent in the fourth quarter of the last fiscal year, by 4 cents in the third quarter of the last fiscal year, and by 2 cents in the second quarter of the last fiscal year.

Revenue has increased for four quarters in a row. Revenue increased 10% to $566.7 million in the fourth quarter of the last fiscal year. The figure rose 11.6% in the third quarter of the last fiscal year from the year earlier and climbed 15.5% in the second quarter of the last fiscal year from the year-ago quarter.

The increase in profit last quarter comes after net income fell in the previous quarter. In the fourth quarter of the last fiscal year, net income declined 72.7% to $2.2 million.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the second quarter has moved up from 47 cents a share to 51 cents over the last ninety days. Over the past three months, the average estimate for the fiscal year has climbed from $1.89 per to share to $2.

Competitors to Watch: New York & Company, Inc., Coldwater Creek Inc., Christopher & Banks Corp., The Talbots, Inc., Charming Shoppes, Inc., Chico’s FAS, Inc., Ascena Retail Group Inc, Limited Brands, Inc., bebe stores, inc., and Body Central Acquisition Corp.

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

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