) reported strong growth in online sales in its recently released
Q1'11 earnings. The leading specialty retailer of women's apparel,
shoes and accessories primarily competes with firms like
), J.Crew Group (NYSE:JCG), Jones Apparel Group (
) and Limited Brands (NYSE:LTD) in the U.S. We currently
have a near
$31 Trefis price estimate for Ann
with LOFT e-commerce and Ann Taylor e-commerce making up ~10% and
~9% of the firm's value. Our price estimate is around 15% ahead of
the current market price.
Strong Double Digit Growth in Online Sales
Ann witnessed solid growth figures in its online retail channel
with total web sales increasing 36% to near $58 million
from $42 million in the first quarter of 2010. E-commerce sales for
the Ann Taylor brand grew 47% to $29.5 million from $20 million
during the last year.
We currently forecast Ann Taylor e-commerce sales to be ~$105
million in 2011. However, better than expected growth in web sales
at Ann Taylor- in line with Q1 results - would mean an upside to
our estimate for Ann.
E-commerce sales growth for the Loft brand was also very strong
at 31.6% year over year with sales increasing to $28 million from
$21.5 million in first quarter of 2010.
We currently estimate that LOFT e-commerce will reach around
$110 million in 2011, though there could be upside to our
$31 price estimate
if sales improve ahead of our forecast.
See our full analysis of Ann