QUOTE AND NEWS
SeekingAlpha  Aug 28  Comment 
By Options Calling: Ann Inc. (NYSE:ANN) released its second quarter earnings report recently. Shortly after the report was released, activist investor Engine Capital and its hedge fund partner Red Alder pressured Ann Inc. to sell Ann Taylor and...
TheStreet.com  Aug 27  Comment 
NEW YORK (TheStreet) -- Shares of Ann Inc.a are down -1.46% to $41.26 a day after it was reported that the company may be for sale,abut it's not clear how many suitors will come knocking, the New York Post reports. Shares of the company jumped...
Motley Fool  Aug 26  Comment 
Activist investors have suggested Ann could release some value by selling out, but it's not going to happen.
TheStreet.com  Aug 26  Comment 
NEW YORK (TheStreet) -- ANN shares are up 5.4% to $42.17 on Tuesday following newsathat the company was consulting with advisers at JPMorgan to "explore strategic alternatives," including a possible sale, according to a Reuters report. The...
Yahoo  Aug 26  Comment 
Ann Inc has hired JPMorgan Chase & Co to explore strategic alternatives, including a potential sale of the women's retailer, according to people familiar with the matter. The hiring of an investment bank comes as the Ann Taylor parent faces...
SeekingAlpha  Aug 25  Comment 
By Zacks Investment Research: Ann’s shares slumped on Friday after weak results and guidance. Analysts have started cutting their estimates further for this Zacks Rank # 5 (Strong Sell) stock. About the Company ANN Inc (NYSE:ANN), the...
Benzinga  Aug 25  Comment 
Ann (NYSE: ANN) gained more than five percent in pre-market activity after a one percent stakeholder went public with its desire to boost shareholder value. The apparel retailing chain, which has seen flat or declining same-store sales...
TheStreet.com  Aug 25  Comment 
NEW YORK (TheStreet) --aAnn was gaining 5.8% to $39.70 in pre-market trading Monday after activist investors Engine Capital and Red Alder sent a letter to the retailer's board of directors. The letter urged the company to sell itself, saying it...
StreetInsider.com  Aug 25  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/ANN%2C+Inc.+%28ANN%29+Comments+on+Letter+from+Activist+Holders/9778870.html for the full story.
Wall Street Journal  Aug 25  Comment 
Engine Capital, which along with a partner controls more than 1% of Ann Inc. stock, believes a strategic or private-equity buyer would be willing to pay between $50 and $55 a share for the women's retailer.




 


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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