Ann Inc reports positive comparable sale in Q4

For the fourth quarter of fiscal 2014, Ann Inc reported earnings per diluted share of 0.01 dollar against earnings per diluted share of 0.10 dollar in the fourth quarter of fiscal 2013. For the full year of fiscal 2014, earnings per diluted share were 1.46 dollars on a GAAP basis compared with earnings per diluted share of 2.19 dollars for the full year of fiscal 2013.

Commenting on the results, Kay Krill, President and Chief Executive Officer, said, “Despite a highly promotional and competitive environment, Ann 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.”

Total net sales for the fourth quarter of fiscal 2014 were 647.4 million dollars, compared with net sales of 623.3 million dollars in the fourth quarter of fiscal 2013. By brand, net sales across all channels of the Ann Taylor brand totaled 249.9 million dollars compared with net sales of 246.2 million dollars, same quarter last year. At the Loft brand, net sales across all channels were 397.5 million dollars against net sales of 377.1 million dollars, last year. Total Company comparable sales for the quarter increased 1 percent on top of an increase of 2.9 percent in the fourth quarter of 2013.

At Ann Taylor, total brand comparable sales declined 0.4 percent, reflecting flat comparable sales at Ann Taylor, which includes Ann Taylor stores and anntaylor.com, and a decline of 1.5 percent in the Ann Taylor Factory channel. At Loft, total brand comparable sales increased 1.9 percent, reflecting an increase of 1 percent at Loft, which includes Loft stores and Loft.com, and an increase of 6.6 percent in the Loft Outlet channel.

Gross margin as a percentage of net sales was 45.8 percent, a decrease of 350 basis points compared with the 49.3 percent gross margin rate achieved in the fourth quarter of 2013. The decrease in gross margin rate was primarily due to higher promotional activity at both Ann Taylor and Loft.

Total net sales for the full year of fiscal 2014 were 2.53 billion dollars, compared with net sales of 2.49 billion dollars in fiscal 2013. By brand, net sales across all channels of the Ann Taylor brand totaled 952.8 million dollars compared with net sales of 959.8 million dollars in fiscal 2013. At the Loft brand, net sales across all channels were 1,580.7 million dollars in 2014, compared with net sales of 1,533.7 million dollars in 2013.

Total company comparable sales decreased 1.9 percent. At the Ann Taylor brand, total comparable sales decreased 2.2 percent, including decreases of 0.7 percent at Ann Taylor and 5.2 percent at Ann Taylor Factory. At the Loft brand, total comparable sales decreased 1.7 percent, including a decrease of 2.4 percent at Loft, partially offset by an increase of 1.3 percent at Loft Outlet. Gross margin as a percentage of net sales was 51 percent, compared with 53.9 percent in fiscal 2013.

During fiscal 2014, the company opened 50 stores, comprised of three Ann Taylor stores, eight Ann Taylor Factory stores, 17 Loft stores, 17 Loft Outlet stores and five Lou & Grey stores. The company also closed 45 stores during the year comprised of 26 Ann Taylor stores and 19 Loft stores. The total store count at the end of fiscal 2014 was 1,030, comprised of 245 Ann Taylor stores, 116 Ann Taylor Factory stores, 537 Loft stores, 127 Loft Outlet stores and five Lou & Grey stores.

For the fiscal first quarter of 2015, the company expects, total net sales to be 605 million dollars, reflecting total company comparable sales that are slightly positive compared to the fiscal first quarter of 2014 and gross margin rate performance to be 53 percent. In terms of the full year fiscal 2015, the company currently anticipates total net sales to be 2.565 billion dollars, reflecting a total company comparable sales increase in the low-single digits and gross margin rate performance to be 52 percent.