NEWS: Ann Inc., the parent company of Ann Taylor and Loft, said Friday that its fiscal third-quarter earnings came in above market expectations, helped by stronger sales. But the retailer gave a disappointing fourth-quarter revenue forecast, which includes the critical holiday season.
DETAILS: The company said revenue from stores open at least a year increased 3.7 percent for the quarter, with a 0.6 percent gain at Ann Taylor and 5.6 percent increase at Loft. This is considered a key measure of financial performance as it strips away the impact of recently opened and closed stores.
NUMBERS: Net income rose to $41.2 million, or 89 cents per share, for the quarter that ended Nov. 2. That is up from $40.7 million, or 84 cents per share, last year. Revenue increased 7 percent to $657.7 million.
Analysts polled by FactSet were anticipating earnings of 88 cents per share on revenue of $654.2 million.
FUTURE: The company expects revenue of $640 million for its fourth quarter. Analysts were anticipating $645.2 million. For the full year, the company expects revenue of $2.51 billion, in line with market forecasts.
STOCK: Shares of Ann fell 12 cents to $36.15 by midmorning amid a broader market uptick.