ANN Q1 Profit Tops Estimates - Quick Facts

(RTTNews) - ANN INC. (ANN) reported first-quarter net income of $13.6 million, or $0.29 per share, compared to $5.2 million, or $0.11 per share, last year. Excluding the $3.7 million, or $0.08 per share, after-tax effect of the first quarter 2015 restructuring charge, net income would have been $17.3 million, or $0.37 per share.

On average, 19 analysts polled by Thomson Reuters expected the company to report profit per share of $0.33 for the quarter. Analysts' estimates typically exclude special items.

Total net sales were $597.7 million, compared to $590.6 million, a year ago. Analysts expected revenue of $604.87 million for the quarter.

Kay Krill, CEO, said, "ANN INC. delivered bottom-line results for the quarter that exceeded our expectations. We were able to achieve these results, despite softer-than-anticipated gross margin performance, through continued effective management of expenses. The results reflected a weak February but positive comparable sales performance at both Ann Taylor and LOFT in the combined March and April period, as clients responded positively to our new Spring assortments that coincided with the onset of warmer weather."

ANN INC. expects the transaction with ascena to close in the second half of 2015. Upon closing, ANN stockholders will receive $37.34 in cash and 0.68 of a share of ascena common stock in exchange for each share of ANN common stock. At closing of the transaction, ANN INC. stockholders will own approximately 16% of ascena.

Excluding the potential impact of the transaction with ascena, the company expects second quarter total net sales to be $660 million. Analysts expect the company to report second-quarter revenue of $659.13 million.

Excluding the potential impact of the transaction with ascena, the company expects fiscal 2015 total net sales to be $2.56 billion, reflecting a total company comparable sales increase in the low-single digits. Analysts expect the company to report full year revenue of $2.58 billion.

ANN INC. also announced the early completion of its endless aisle roll-out, which further enhances its omni-channel capabilities.