Ann Inc. Extends Gains On Q4 Results; Analyst Boosts Target

Ann Inc.

extended its gains Monday after posting better-than-expected fourth-quarter results along with plans for future cost cutting. The New York-based women's apparel retailer changed hands recently at $41.30, up $0.85 cents. The shares are up about 13 percent since results got posted Friday. UBS' Roxanne Meyer on Monday raised her target 17 percent to $41, maintaining a Neutral rating. "The real news is the supply chain initiative," Meyer said. Ann said Friday the initiative will result in $50 million in annual benefits to gross margin between now and 2017. The company also announced separate savings of $35 million by 2017 from an ongoing "optimization" of its sales, general and administrative costs. The estimate includes $20 million in savings included in its 2015 outlook. Meyer boosted her 2016 earnings estimate by 6 percent to $2.62 a share, citing the cost cuts and supply chain initiative. The analyst, however, shaved 2 cents from 2015 estimate to $2.04 a share. The company, which launched a review of its supply chain management four months ago, said the initiative will focus on improved production speed and flexibility and reducing overall cost of goods sold.