QUOTE AND NEWS
Benzinga  May 22  Comment 
Ann Inc (NYSE: ANN) reported better-than-expected earnings for the first quarter on Friday, but the company's sales missed analysts' expectations. The New York-based company posted quarterly net income of $13.6 million, or $0.29 per share,...
MarketWatch  May 22  Comment 
Ann Inc. , owner of Ann Taylor and LOFT women's apparel chains, said Friday it had net income of $13.5 million, or 29 cents a share, in the first quarter, up from $5.18 million, or 11 cents a share, in the year-earlier period. Excluding an 8 cents...
Benzinga  May 21  Comment 
Ann Inc (NYSE: ANN) will report Q1 earnings Friday ahead of the market open. The company has guided that revenue would come in at $605 million while the Wall Street consensus expected EPS of $0.33 on revenue of $604.87 million. In a May 4...
Benzinga  May 19  Comment 
In a report published Tuesday, Piper Jaffray analysts maintained a Sector Perform rating on Ascena Retail Group Inc (NASDAQ: ASNA), while raising the price target from $16 to $18, following the company's announcement to acquire Ann Inc (NYSE:...
Benzinga  May 19  Comment 
Analysts at Piper Jaffray downgraded Ann Inc (NYSE: ANN) from Overweight to Neutral. The price target for Ann has been raised from $46.00 to $47.00. Ann shares have gained 15.22 percent over the past 52 weeks, while the S&P 500 index has...
Clusterstock  May 18  Comment 
Ascena Retail Group is the most powerful women's clothing company  The company just acquired Ann Taylor's eponymous and Loft brands for about $2 billion.  With $4.7 billion in annual sales, Ascena was already the fifth-largest retail...
Clusterstock  May 18  Comment 
Stocks are higher but little changed, with the Dow and S&P 500 climbing to record highs after a brief pullback. Near 11:35 a.m. ET, the Dow was up 17 points, the S&P 500 was up 4 points, and the Nasdaq was up 15 points.  The Dow climbed to as...
New York Times  May 18  Comment 
Ascena, the owner of Lane Bryant and Dressbarn, struck a deal to acquire Ann, which had been under pressure to seek a sale.




 


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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