ANN INC. Reports Second Quarter Results

PR Newswire

Here are excerpts from ANN INC's 2nd quarter results.

-- Total Company Sales Increase 15%: Comparable Sales Increase 9% --

NEW YORK, Aug. 19, 2011 /PRNewswire/ -- ANN INC. (NYSE: ANN) today reported results for the fiscal second quarter of 2011, ended July 30, 2011.  The Company also provided its outlook for the third quarter and full year of fiscal 2011.

For the fiscal second quarter of 2011, the Company reported earnings per diluted share of $0.47, compared with earnings per diluted share of $0.31 in the second quarter of 2010. 

Kay Krill, President and CEO, commented, "With our second quarter results, ANN INC. delivered an eighth consecutive quarter of double digit growth in earnings and diluted earnings per share. Our results reflect strong performance at the LOFT brand across all channels for the quarter, as clients responded to the assortment of feminine basics and fashion at great value.  We also delivered solid results in the Ann Taylor brand, with strong performance in the e-commerce and factory channels and positive, but softer-than-expected, performance in the stores channel.

"During the second quarter, we continued to expand our presence in highly profitable channels through the addition of 12 factory outlet stores and the successful transition of both brands to a new e-commerce platform, which will enable accelerated growth in this important channel.  Looking ahead to the third quarter, we are pleased by client response to our new pre-Fall product assortments, and we fully expect to deliver positive comparable sales performance at both brands in all channels."

• Capital expenditures are expected to be approximately $130 million, reflecting investments of approximately:
  • $60 million in support of approximately 80 new stores for both brands;
  • $25 million to support approximately 35 downsizes and remodels, largely associated with the accelerated conversion of select Ann Taylor stores to the new, more productive, smaller store format;
  • $20 million for store renovation and refurbishment programs, primarily for LOFT stores, and;
  • $25 million to support continued investment in information technology and our high-growth e-commerce channel.
• Total weighted average square footage for fiscal 2011 is expected to increase approximately 4% by year-end, reflecting the opening of approximately 80 new stores, partially offset by approximately 30 store closures and the impact of downsizes.  The Company expects to have approximately 945 stores at fiscal year-end, 

For the full report follow this LINK.

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