QUOTE AND NEWS
Forbes  Nov 25  Comment 
Ann’s sales were impacted by weak mall traffic, sluggish consumer spending and a highly promotional environment. Despite the improvement in consumer confidence and the job situation, U.S. buyers have been somewhat reluctant in spending on...
TheStreet.com  Nov 21  Comment 
NEW YORK (TheStreet) -- Shares of Ann Inc. are lower by 1.41% to $37.80 in pre-market trading on Friday, after the company announced inventory at the end of the 2014 third quarter was up by 8%, sparked by a rise at its Ann Taylor stores, the...
Benzinga  Nov 21  Comment 
Ann Inc (NYSE: ANN) reported results Friday for the fiscal third quarter, ended November 1, 2014. Total net sales for the third quarter of fiscal 2014 were $646.8 million, below estimates of $648.27 and down from the $657.5 million reported in the...
Wall Street Journal  Nov 21  Comment 
Ann Inc., the owner of the Ann Taylor and Loft brands, said its inventory at the end of the November quarter was up 8% from a year earlier, skewed by a surge at Ann Taylor.
MarketWatch  Nov 21  Comment 
Ann Inc. said it had net income of $29.9 million, or 65 cents a share, in its fiscal third quarter, down from $41.2 million, or 89 cents a share, in the year-earlier period. The owner of Ann Taylor and Loft stores said per-share earnings...
Market Intelligence Center  Nov 20  Comment 
The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center have selected a covered-call trade on Ann Inc. (ANN) that includes 5.64% downside protection. Sell one contract of the Jan. '15...
Forbes  Nov 19  Comment 
Although Ann Taylor had maintained a steady growth momentum over the past few quarters, its growth faltered in Q3 due to weak mall traffic, a highly promotional environment and delayed shipments. On the other hand, the retailer’s relatively...
Benzinga  Nov 6  Comment 
Ann Inc (NYSE: ANN) warned that third-quarter results fell below expectations and offered an outlook for the current period below Wall Street views. The New York-based women's apparel retailer opened more than 4 percent lower, but has...
Wall Street Journal  Nov 6  Comment 
Ann Inc. said results at its Ann Taylor and Loft brands fell short of expectations in the October quarter amid lower mall traffic and a highly promotional retail environment.




 


Ann Taylor Stores (NYSE: ANN) sells women's clothing in the United States and Puerto Rico under the names Ann Taylor, Ann Taylor LOFT, and Ann Taylor Factory Store. Through its various brands, the company seeks to provide busy women with an all inclusive shopping experience. The namesake brand focuses on meeting women's professional attire needs, while the LOFT store focuses on casual attire. In fiscal 2010, ANN posted $1.98 billion in net sales and $73.4 million in net income.[1]

In recent years, ANN's performance has been quite erratic. A lack of proper controls has often led to excess inventory and heavy discounting. Under the present leadership, ANN has sought to exercise better inventory oversight while repositioning its brands as full-priced destinations. As the company's main brands, Ann Taylor and Ann Taylor Loft approach market saturation, the company will be forced to develop new concepts in order to maintain acceptable growth.

Business Overview

Business Segments

Business Growth

Fiscal 2010 Performance (ended January 29th, 2011)

  • Net sales increased 8.3% to $1.98 billion.[1]
  • ANN posted net income of $73.4 million, compared to a $18.2 million loss in fiscal 2009.[1]

Trends and Forces

"Almost-luxury" Brands Hurt by Recessionary U.S. Economic Cycles

Consumer spending on near luxury goods such as ANN products is discretionary in nature. In times of economic recession consumer's quickly decrease expenditure on non-necessities like cashmere fleeces. For example, during a subprime lending crisis, real estate and credit markets are severely affected. Consumers faced with an inability to draw on equity in their home to fund purchases and a tougher overall credit market were in many instances "forced" to spend less on clothing. Additionally, other economic factors like the price of oil can further decrease disposable income available for discretionary purchases. Under such conditions, consumers to who do purchase clothing tend to skew their purchases toward lower-end retailers.

Reaching Market Saturation

Both of ANN's primary concepts are approaching market saturation. In order to keep growth from stalling, Ann Taylor is working on new outlets, like a new venture into high end custom designed fashion.

Competition

The retail environment is highly competitive especially in women’s apparel.

  • Talbots (TLB) - TLB has a successful women's apparel line, and also targets women over 35.
  • Chico's FAS (CHS) - CHS also has a successful women's apparel line.
  • Gap (GPS) - GPS offers similar apparel styles as ANN.
  • Nordstrom (JWN) - Brands sold at Nordstrom compete for female consumers who also shop at Ann Taylor and/or LOFT.
  • Macy's (M) - Brands sold at Macy's compete for female consumers who also shop at Ann Taylor and/or LOFT.
  • Limited Brands (LTD) - The Limited offers similar styles to Ann Taylor, but also has the very successful Victoria's Secret brand.

Superb ifnomraotin here, ol'e chap; keep burning the midnight oil.

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