Ann Soars on Earnings Beat - InvestingChannel

Ann Soars on Earnings Beat

Shares of Ann (NYSE: ANN) traded sharply higher on Wednesday, up more than eight percent, after the company posted great results for the third quarter.

Ann is a retail chain that owns the Ann Taylor and Loft brands.

For the third quarter, Ann reported an earnings per share figure of $0.76 — more than the $0.74 that was anticipated. Likewise, Ann also beat on net sales, reporting $612.5 million, more than the $605.5 million that analysts were expecting.

Ann provided some guidance for the fiscal year. The company said sales should come in at $2.395 billion, slightly more than the $2.385 billion it had previously seen and more than the consensus estimate of $2.388 billion.

Comparable sales came in positive, up 5.5 percent in the third quarter.

Speaking about its individual outlets, Ann said it had opened 25 stores in the third quarter. The retailer has limited international exposure, but management said its Canadian stores were exceeding expectations.

Further, the company said that it was gaining market share in both of its brands.

As the company is headquartered in New York City, and has its flagship store on Madison Avenue, investors might have anticipated some effects from Hurricane Sandy. Ann addressed this, stating that is fiscal year forecast factored in the hurricane, and that it anticipated a topline effect of $10 million.

Ann was only one retailer to report positive data on Wednesday. American Eagle Outfitters (NYSE: AEO) and Express (NYSE: EXPR) also posted positive earnings results on Wednesday, and saw similar gains in their share price.

Even beleaguered retailer J.C. Penney (NYSE: JCP) traded higher on Wednesday, although it did not report earnings.

Shares of Ann traded near $35 on Wednesday.

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