AnnTaylor issues cautious holiday outlook

AnnTaylor swings to profit in the third quarter, ending a positive week for women's retailers.

By TheStreet Staff Nov 20, 2009 11:36AM

TheStreet.comBy Jeanine Poggi, TheStreet.com

 

AnnTaylor Stores ends a calm week for women’s clothing retailers by swinging to a profit in its third quarter.

 

Still, the retailer issued a sluggish holiday outlook, sending shares tumbling 5.9% to $13 in pre-market trading.

 

During the quarter, the company earned $2.07 million, or 3 cents a share, compared with a loss of $13.4 million, or 24 cents, in the year-earlier period.

 

Excluding restructuring charges of 17 cents a share, AnnTaylor said it would have earned 20 cents a share, easily topping analysts' estimates of 7 cents.

 

Bing: More on AnnTaylor

 

Sales slipped 12% to $462.4 million from $572.2 million, while same-store sales tumbled 14%. By division, comparable sales sank 26% at its namesake chain, and were down 9.7% at Loft.

 

The majority of the earnings gain came from strong gross margins.

 

Looking ahead, AnnTaylor foresees fourth-quarter sales to decline slightly from the third quarter. Analysts are calling for revenue of $458.2 million.

 

And like Target, the company foresees a "highly promotional" holiday.

 

"Sales guidance is slightly below our fourth-quarter sales estimates,” UBS analyst Roxanne Meyer wrote in a research report. “While gross margin is expected [to be up] significantly, the bar on the Street is already high.”

 

On Thursday, rival New York & Co. said it narrowed its loss in its third quarter and expects to move out of the red in the fourth quarter.

 

Dress Barn said first-quarter profit grew 10% as sales improved. The retailer also raised its 2010 guidance to a range of $1.20 to $1.30 per share, more than the $1.20 a share analysts forecast.

 

But the clear winner in the women's apparel sector this week was Chico's, which posted a gain in profit and sales in its third quarter.

 

Related Articles

 

Gap sales see recovery

 

Revival for regional department store chains?

 

Sears posts another loss

 

 

 

0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

120
120 rated 1
268
268 rated 2
439
439 rated 3
709
709 rated 4
641
641 rated 5
609
609 rated 6
640
640 rated 7
516
516 rated 8
272
272 rated 9
152
152 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
EXCEXELON CORPORATION10
TAT&T Inc9
VZVERIZON COMMUNICATIONS8
CTLCENTURYLINK Inc8
AAPLAPPLE Inc10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.