UPDATE: Ann Beats Q4 Estimates, Shares Jump

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Shares of
Ann Inc.
ANN
jumped over 5% in pre-market trading after the company reported stronger-than-expected results for the fourth quarter. The New York-based company posted quarterly net earnings of $262,000, or $0.01 per share, down from $4.7 million, or $0.10 per share, in the year-ago period. Excluding non-recurring items, the company earned $0.12 per share. Its total sales climbed to $647.4 million versus $623.3 million. However, analysts were expecting a loss of $0.03 per share on revenue of $626 million. Same-store sales increased 1% in the quarter. Ann Taylor brand comparable sales slipped 0.4%, while Loft brand comparable sales climbed 1.9% in the same period. Gross margin as a percentage of net sales narrowed to 45.8% from 49.3%. Selling, general and administrative expenses slipped to $295.2 million from $301.5 million. During the fourth quarter, Ann opened 6 new stores. Ann ended the year with around $208 million in cash. Kay Krill, President and Chief Executive Officer, commented, "Despite a highly promotional and competitive environment, ANN INC. achieved positive comparable sales and effectively managed expenses in the fourth quarter, generating bottom-line results that came in slightly ahead of the outlook we provided in November. In addition, we delivered on our commitment to clear excess inventory, entering fiscal year 2015 in a healthy position in all channels." For the current quarter, Ann projects total sales of $605 million, versus analysts' estimates of $605 million. The company also expects for FY16 revenue of $2.565 billion, versus expectations of $2.6 billion. Ann shares rose 4.86% to $39.25 in pre-market trading.
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Posted In: EarningsNewsGuidanceprofit
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