ANN INC. Provides Update for Fiscal Fourth Quarter and Full Year 2013
NEW YORK, Feb. 6, 2014 /CNW/ - ANN INC. (NYSE: ANN) today announced that it
expects to report another year of record earnings per share, despite lower
than anticipated fourth quarter performance.
Kay Krill, President and Chief Executive Officer, said, "Once again, ANN INC.
expects to report record earnings per share for the fiscal year. Our 2013
performance was driven by higher sales and a healthy gross margin rate. In
fact, this year marks the Company's fourth consecutive year of positive
comparable sales performance at both the Ann Taylor and LOFT brands.
"We are pleased with the year's results, despite the fact that the fourth
quarter came in lower than anticipated. The Company's sales, gross margin and
EPS for the fourth quarter of 2013 will be higher than the fourth quarter of
2012. However, soft traffic and tepid consumer spending across the industry
negatively impacted us, particularly in factory outlet centers and geographic
regions that experienced extreme winter weather.
"Looking ahead, we have entered the first quarter with clean inventories and
fresh Spring product at both brands. We are well-positioned to continue to
maximize the potential at both of our brands, and are highly focused on
delivering profitable growth at ANN INC. in the coming year," Ms. Krill
Update on Full Year 2013 Outlook
Based on preliminary results, the update to the full year 2013 outlook
provided on November 22, 2013 is as follows:
-- Total net sales for fiscal 2013 are now expected to be $2.493
billion, reflecting a total net sales increase of 5% and a
comparable sales increase of 2%.
-- Gross margin rate performance is expected to be 53.9%.
-- Total SG&A expenses are expected to be $1.173 billion.
-- The Company's effective annual tax rate is expected to be
-- Full-year weighted average diluted shares outstanding are
expected to be approximately 46.9 million, which includes the
effect of participating securities.
-- Capital expenditures are expected to be approximately $150
Update on Fourth Quarter 2013 Outlook
Based on preliminary results, the update to the fourth quarter 2013 outlook
provided on November 22, 2013 is as follows:
-- Total Company net sales for the fiscal fourth quarter of 2013
are now expected to be $623 million, reflecting a comparable
sales increase of 3%.
o At the Ann Taylor brand, total comparable sales declined 1%,
reflecting an increase of 1% at Ann Taylor, offset by a
decline of 6% in the Ann Taylor Factory channel.
o At the LOFT brand, total comparable sales increased 6%,
reflecting an increase of 8% at LOFT, partially offset by a
decline of 4% in the LOFT Outlet channel.
-- Gross margin rate for the Company is expected to be
-- Selling, general and administrative expenses are estimated to
be $301 million.
-- Total weighted average diluted shares outstanding for the
fourth quarter are expected to be approximately 46.6 million,
which includes the effect of participating securities.
Fiscal Fourth-Quarter and Year-End 2013 Conference Call Information
ANN INC. (NYSE: ANN) will release its fiscal fourth-quarter and full-year
2013 results on Friday, March 14, 2014. Results will be released over PR
Newswire at approximately 8:00 A.M. Eastern Time. The Company will also host
a live conference call and simultaneous audio webcast from 8:30 A.M. to 9:30
A.M. Eastern Time which will include comments from management and a question
and answer session.
Parties interested in participating in this call should dial in at
888-469-3144 five minutes prior to the start time. The conference access code
is 8117215. A recording of the call will be available from March 14 through
March 21. To hear the recording, please call 888-567-0389. No conference
access code is needed for the call recording.
To access the simultaneous webcast of the conference call (a replay of which
will be available), please access the Company's Investor Relations web site at
Certain statements in this press release are forward-looking statements made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. The forward-looking statements may use the words "expect,"
"anticipate," "plan," "intend," "project," "may," "believe" and similar
expressions. Forward-looking statements also include representations of the
expectations or beliefs of the Company concerning future events that involve
risks and uncertainties, including:
-- the Company's ability to anticipate and respond to changing
client preferences and fashion trends and provide a balanced
assortment of merchandise that satisfies client demands in a
-- the effectiveness of the Company's brand awareness and
marketing programs, its ability to maintain the value of its
brands and engage new and existing clients;
-- the effect of competitive pressures from other retailers;
-- the Company's ability to manage inventory levels and changes in
-- the Company's reliance on key management and its ability to
hire, retain and train qualified associates;
-- the performance and operation of the Company's websites and the
risks associated with Internet sales;
-- the Company's reliance on third-party manufacturers and key
vendors, including operational risks such as reduced production
capacity, errors in complying with merchandise specifications,
insufficient quality control and failure to meet production
-- the impact of fluctuations in sourcing costs, in particular,
increases in the costs of raw materials, labor, fuel and
-- the Company's ability to successfully implement its business
transformation initiatives and upgrade and maintain its
information systems, including adequate system security
controls, successful transitioning of certain information
technology functions to third parties and the ability to
operate in accordance with its business continuity plan in the
event of a disruption;
-- the Company's ability to successfully execute brand goals,
objectives and new concepts and strategies, including
-- the Company's ability to secure and protect trademarks and
other intellectual property rights;
-- a significant change in the regulatory environment applicable
to the Company's business and the Company's ability to comply
with legal and regulatory requirements;
-- the Company's reliance on foreign sources of production and the
associated risks of doing business in foreign markets,
including fluctuations in the value of the U.S. dollar against
foreign currencies, the imposition of duties or other possible
trade law or import restrictions, including legislation
relating to import quotas, and financial or political
instability in any of the countries in which the Company's
merchandise is manufactured;
-- the potential impact of natural disasters and public health
concerns, including severe infectious diseases, acts of war or
terrorism in the United States or worldwide, particularly on
the Company's foreign sourcing offices and the manufacturing
operations of the Company's vendors;
-- the Company's ability to successfully manage store growth and
optimize the productivity and profitability of its store
-- the impact of a privacy breach and the resulting effect on the
Company's business and reputation;
-- the failure by independent manufacturers to comply with the
Company's social compliance program requirements;
-- the effect of general economic conditions on consumer spending
and the Company's liquidity and capital resources;
-- the Company's dependence on its Louisville distribution center
and third-party distribution facilities and transportation
companies, including any significant interruptions due to work
stoppages, slowdowns or strikes;
-- the Company's dependence on shopping malls and other retail
centers to attract customers and the impact of potential
consolidation of commercial and retail landlords on the
Company's ability to negotiate favorable rental terms;
-- the impact on the Company's stock price relating to the
Company's level of sales and earnings growth;
-- the Company's ability to realize its deferred tax assets;
-- the effect of external economic factors on the Company's future
funding obligations for its defined benefit pension plan; and
-- the impact of climate change and extreme or unseasonable
weather conditions on the Company's business.
Further description of these risks and uncertainties and other important
factors are set forth in the Company's latest Annual Report on Form 10-K,
including but not limited to Item 1A – Risk Factors and Item 7 –
Management's Discussion and Analysis of Financial Condition and Results of
Operations therein, and in the Company's other filings with the SEC. Although
these forward-looking statements reflect the Company's current expectations
concerning future events, actual results may differ materially from current
expectations or historical results. The Company does not assume any obligation
to publicly update or revise any forward-looking statements at any time for
About ANN INC.
ANN INC. is the parent Company of Ann Taylor and LOFT, two of the leading
women's specialty retail fashion brands in North America. As of November 2,
2013, the Company operated 1,027 Ann Taylor, Ann Taylor Factory, LOFT and LOFT
Outlet stores in 47 states, the District of Columbia, Puerto Rico and Canada.
Our Ann Taylor and LOFT brands are also available online in more than 100
countries worldwide at AnnTaylor.com and LOFT.com. Visit ANNINC.com for more
information (NYSE: ANN).
SOURCE ANN INC.
Investor Contact: Judith Lord, Vice President, Investor Relations, ANN INC.,
212-541-3300 ext. 3598; Press Contact: Catherine Fisher, Vice President,
Corporate Communications, ANN INC., 212-541-3300 ext. 2199
To view this news release in HTML formatting, please use the following URL:
CO: ANN INC.
ST: New York
NI: RET CLO CONF EST ERN
-0- Feb/06/2014 12:45 GMT
Press spacebar to pause and continue. Press esc to stop.