National retailer of upscale women's clothing,
) is scheduled to report its financial results for the third
quarter of fiscal 2012, before the opening bell on Wednesday,
November 28. The current Zacks Consensus Estimate for the third
quarter earnings is 74 cents a share, which is much higher than
61 cents delivered in the comparable quarter last year. Revenue,
as per the Zacks Consensus Estimate, is pegged at $607.0
With respect to earnings surprises, Ann has topped the
estimates over the trailing four quarters in the range of
7.0%-23.5%. The average surprise over the last four quarters
remained at 13.9%.
Driven by strong top-line performance along with improved
margins, Ann's earnings of 63 cents per share for the second
quarter of fiscal 2012 surged over 34% from the year-ago
quarter's earnings of 47 cents. Moreover, quarterly earnings
substantially beat the Zacks Consensus Estimate of 51 cents per
During the quarter, Ann's net sales grew approximately 6.6% to
$594.9 million from $558.2 million in the third quarter of 2011.
The year-over-year growth was primarily driven by a 4.7% rise in
same-store sales. Moreover, quarterly revenue surpassed the Zacks
Consensus Estimate of $586 million.
Ann now targets total sales of $2.385 billion for the rest of
fiscal 2012, assuming a mid-single digit increase in comparable
store sales. At the end of first quarter, the company had
estimated to generate $2.375 billion of sales in fiscal 2012.
Presently, the company expects to achieve a gross margin rate of
55% in fiscal 2012.
For the third quarter of fiscal 2012, the company expects
sales of $600 million, assuming mid-single-digit growth in
comparable store sales. Moreover, gross margin is expected to
touch 58% while selling, general and administrative expenses are
pegged at $290 million.
(For full report on earnings study:
Ann Beats, Ups Fiscal Guidance
Earnings Estimate Revisions
We do not see any major revisions in estimates at this point.
Among the 13 estimates, one for the third quarter and one for the
fiscal 2012 were revised upward, while no movement was seen in
the opposite direction in the last 30 days. Moreover, in the last
7 days, we do not see any estimate revisions, either for the
third quarter or fiscal 2012.
The magnitude of estimate revisions for Ann depicts a
'Neutral' outlook as earnings estimates for third-quarter and
fiscal 2012 remain unchanged at 74 cents and $2.20 per share,
respectively, in the last 30 days.
We believe that with the strategy of expanding store network
in domestic as well as international market along with enhancing
e-commerce capabilities will certainly boost the company's top
and bottom lines.
Ann currently retains a Zacks #2 Rank implying a short-term
Buy rating. Moreover, we are maintaining a long-term Outperform
recommendation on the stock. The company directly competes with
Chico's FAS Inc.
Headquartered in New York, Ann operates as a national retailer
of upscale women's clothing. Its stores offer a full range of
apparel and accessories under the names Ann Taylor, Ann Taylor
Studio, ATdenim, Ann Taylor Petites and LOFT. It serves customers
through its traditional retail stores, online stores -
anntaylor.com and LOFTonline.com. The company targets
college-educated women between the ages of 25 and 55, who are
either professionals or employed in managerial positions.
ANN INC (ANN): Free Stock Analysis Report
CHICOS FAS INC (CHS): Free Stock Analysis
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