Ann Inc. Earnings: Margin Expansion Boosted by Rising Revenue, Net Income Up

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Ann Inc. (NYSE:ANN) reported its results 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 Inc. Earnings Cheat Sheet

Results: Net income for Ann Inc. rose to $40.7 million (84 cents per share) vs. $32.3 million (61 cents per share) in the same quarter a year earlier. This marks a rise of 26.2% from the year-earlier quarter.

Revenue: Rose 8.6% to $612.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ann Inc. reported adjusted net income of 76 cents per share. By that measure, the company beat the mean estimate of 74 cents per share. It beat the average revenue estimate of $560.8 million.

Quoting Management: Kay Krill, President and CEO, said, “We are very pleased to report that ANN INC. delivered record EPS results again this quarter. Significant top-line growth, coupled with a double-digit percentage increase in operating income, contributed to a 25 percent increase in diluted earnings per share, excluding the $0.08 benefit. Our strong performance was driven by both Ann Taylor and LOFT. Both brands delivered a positive comp for the quarter by remaining clearly focused on what’s important to our clients: great fashion, excellent quality, outstanding value and a seamless and engaging shopping experience.”

Key Stats:

The company has now seen its net income rise for three quarters in a row. In the second quarter, net income rose 24% and in the first quarter, the figure rose 5.2%.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 12 cents in the second quarter, by 7 cents in the first quarter, and by one cent in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 6.6% to $594.9 million in the second quarter. The figure rose 7% in the first quarter from the year earlier and climbed 10% in the fourth quarter of the last fiscal year from the year-ago quarter.

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 24 cents per share, up from 23 cents ninety days ago. The average estimate for the fiscal year is $2.20 per share, a rise from $2.18 ninety days ago.

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

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