Ann Inc. 4Q profit plunges 73%

Parent group of women wear brands Ann Taylor and Loft saw its last fiscal quarter´s profit to plunge by over 70% mainly due to weak sales performance at its Ann Taylor stores. President and CEO Kay Krill said in a statement that the company dealt

with significantly higher-than-expected promotional activity at Ann Taylor stores during the quarter. Results at Ann Taylor's website and its factory stores were strong in the period, she added.

Ann Inc. earned USD2.2 million, or 4 cents per share, for the three months ended Jan. 28. That was down from $8 million, or 14 cents per share, during the same period in 2010.

However, there is a whole different picture for the apparel group ahead for 2012.  The  retailer provided a full-year revenue guidance that met Wall Street's expectations, and a first-quarter revenue outlook slightly above analyst estimates, what led Ann's stock to climb nearly 8% to $27.87 in early afternoon trading on Friday. Selling, general and administrative expenses climbed to $274 million from $252 million. Revenue rose 10% to $566.7 million from $515.3 million, just short of Wall Street's $567 million estimate.

"Looking ahead to 2012, we are focused on continuing Loft's strong momentum as well as improving the sales productivity and profitability at Ann Taylor stores," Krill said.

For the current year, Ann predicted full-year revenue of about $2.38 billion, with revenue at stores open at least a year posting a mid-single-digit increase. For the first quarter, the retailer anticipates revenue of $560 million and revenue at stores open at least a year rising in the low-single digits. In comparison analysts expect 2012 revenue of $2.38 billion and first-quarter revenue of $559.9 million. Associated Press reported.