UPDATE: Ann Posts 27% Drop In Q1 Profit, Lowers Full-Year Forecast

Ann

reported a 27% drop in its fiscal first-quarter earnings and cut its forecast for the year. Ann now projects full-year net sales of about $2.54 billion, compared to its earlier outlook of $2.57 billion. For the current quarter, it estimates revenue of $640 million, versus analysts' estimates of $637 million. Ann's quarterly profit fell to $20.9 million, or $0.44 per share, from $28.7 million, or $0.58 per share, in the year-ago period. However, analysts were expecting earnings of $0.42 per share. Its sales climbed 2.5% to $574.5 million, while gross margin declined to 55.8% from 56.6%. Ann shares gained 3.77% to $32.24 in pre-market trading.