NEW YORK, Feb. 7, 2013 /PRNewswire/ -- ANN INC. (NYSE: ANN) today announced that it expects to report record earnings per share for the full year of fiscal 2012, notwithstanding lower-than-anticipated results for the fourth quarter.
Update on Full Year 2012 Outlook
Based on preliminary results, the Company is providing an update to the full year fiscal 2012 outlook it provided on November 28, 2012, as follows:
Kay Krill, President and Chief Executive Officer, said, "We are pleased that we will be reporting very strong year-over-year results for fiscal 2012. For the full year, we expect to report record earnings per share and double-digit growth in net income. We will also report strong sales and increased operating profit, as well as strong double-digit growth in e-commerce for the year, all of which reflect the benefit of our strategic growth initiatives.
"In terms of the fourth quarter, the drivers of the softer-than-expected results were twofold: First, ANN INC. has a high concentration of sales in the Northeast region, which were negatively impacted by the lingering effects of Hurricane Sandy. In addition, LOFT's fourth-quarter investment in bright colors did not resonate with our clients this holiday season. As a result, promotions at LOFT ramped up in the back half of the quarter, which pressured margins but effectively cleared through Holiday inventories in order to enter the Spring season in a healthy position.
"At Ann Taylor, we were pleased that the brand continued to make meaningful progress, achieving higher sales and gross margin for the quarter, compared with the fourth quarter of 2011. In addition, the factory outlet channel was successful in delivering profitable growth despite soft traffic and comparable sales.
"Looking ahead, we have entered the first quarter with clean inventories at both brands, and we are well positioned to deliver profitable growth in fiscal 2013. We remain focused on continuing the successful roll-out of our strategic initiatives and remain confident that these will drive further long-term growth," she said.
Update on Fourth Quarter 2012 Outlook
Based on preliminary results, the Company is providing an update to the fiscal fourth quarter 2012 outlook it provided on November 28, 2012, as follows:
Fiscal Fourth Quarter and Year-End 2012 Conference Call Information
ANN INC. (NYSE: ANN) will release its fiscal fourth quarter and full-year 2012 results on Friday, March 8, 2013. Results will be released over PR Newswire at approximately 8:00 A.M. Eastern Time. The Company will also host a live conference call and simultaneous audio webcast from 8:30 A.M. to 9:30 A.M. Eastern Time which will include comments from management and a question and answer session.
Parties interested in participating in this call should dial in at 888-469-3144 five minutes prior to the start time. The conference access code is 8117215. A recording of the call will be available from March 8 through March 15. To hear the recording, please call 888-568-0906. No conference access code is needed for the call recording.
To access the simultaneous webcast of the conference call (a replay of which will be available), please access the Company's Investor Relations web site at http://investor.anninc.com.
Certain statements in this press release are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements may use the words "expect," "anticipate," "plan," "intend," "project," "may," "believe" and similar expressions. Forward-looking statements also include representations of the expectations or beliefs of the Company concerning future events that involve risks and uncertainties, including:
Further description of these risks and uncertainties and other important factors are set forth in the Company's latest Annual Report on Form 10-K, including but not limited to Item 1A – Risk Factors and Item 7 – Management's Discussion and Analysis of Financial Condition and Results of Operations therein, and in the Company's other filings with the SEC. Although these forward-looking statements reflect the Company's current expectations concerning future events, actual results may differ materially from current expectations or historical results. The Company does not assume any obligation to publicly update or revise any forward-looking statements at any time for any reason.
About ANN INC.
ANN INC. is the parent Company of Ann Taylor and LOFT, two of the leading women's specialty retail fashion brands in North America. The Company operates 981 Ann Taylor, Ann Taylor Factory, LOFT and LOFT Outlet stores in 47 states, the District of Columbia, Puerto Rico and Canada as of October 27, 2012, as well as online at AnnTaylor.com and LOFT.com. Visit ANNINC.com for more information (NYSE: ANN).
SOURCE ANN INC.