ANN Beats on Earnings
New York City-based ANN was seeing its stock sit out the market rally Friday, despite reporting fiscal third-quarter 2013 earnings that trumped analyst estimates earlier in the day.
ANN earned $0.89 per share on $657.5 million in sales, numbers respectively 6% and 7% better than it reported in the same period of 2012. Analysts had expected ANN to earn $0.86 per share on $654.2 million in sales. What's more, said company CEO Kay Krill, ANN did all this in "a challenging and highly promotional retail environment."
The CEO noted that third-quarter results exhibited "higher sales, including mid-single digit comparable sales growth, [and] a solid gross margin rate."
Looking forward, ANN advised investors to expect continued solid mid-single-digit same-store sales growth in the fourth quarter, with total sales in the neighborhood of $640 million. By year's end, the company expects to have racked up more than $2.5 billion in total revenue.
Further details included in the company's guidance suggest ANN will end the year with about $104 million in net profit -- roughly $2.31 per share:
- Gross margin rate performance to be 53.9%;
- total SG&A expenses to be $1.177 billion; and
- the company's effective tax rate to be 41%.
The article ANN Beats on Earnings originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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