Ann Taylor escapes heavy discounting over Christmas

Women's apparel retailer Ann Inc, owner of the Ann Taylor and Loft stores,

reported fourth-quarter margins that suggested the company did not have to discount heavily in the holiday shopping season, as unanimously highlighted by analysts covering the stock.

On that note, analysts at Zacks pointed that "Though these factors weighed on the quarterly performance, the company still envisions its sales, gross margin and earnings per share for the fourth quarter to rise year over year".

"Updating its forecast for the fourth quarter and fiscal 2013, the company slashed its sales guidance for both periods. The company now expects fourth-quarter sales to reach 623 million dollars, down from its previous forecast of 640 million dollars. Full-year sales are now projected at 2,493 million dollars compared with 2,510 million dollars guided earlier," summed up their view on the retailer at Zacks Equity Research.

Ann's shares rose 5.5 percent in early trading even as the company cut its fourth-quarter sales estimate, blaming weak traffic and consumer spending.

Additionally, the company pointed out that this year will mark positive comps at both Ann Taylor and Loft for the 4th consecutive year.

Ann said it expects to report a gross margin of about 49.2 percent for the quarter, compared with the 49.1 percent it reported a year earlier. Total comparable store sales fell 1 percent at the company's pricier Ann Taylor brand, which targets women in their 30s. Loft brand saw total comparable store sales rose 6 percent.

The womenswear group estimated sales of 623 million dollars, down from the 640 million it had forecast in November and slightly behind the consensus estimate of 636.4 million dollars, according to data polled by Thomson Reuters I/B/E/S.

"Soft traffic and tepid consumer spending across the industry negatively impacted us, particularly in factory outlet centres and geographic regions that experienced extreme winter weather," Ann Chief Executive Kay Krill said in a statement.

Ann will report fourth-quarter results on March,14.