The 10-second takeaway
For the quarter ended April 28 (Q1), ANN INC met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, both revenue and GAAP earnings per share increased.
Margins contracted across the board.
ANN INC tallied revenue of $560.4 million. The 10 analysts polled by S&P Capital IQ wanted to see revenue of $559.2 million on the same basis. GAAP-reported sales were 7% higher than the prior-year quarter's $523.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.58. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.51 per share. GAAP EPS of $0.58 for Q1 were 14% higher than the prior-year quarter's $0.51 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 56.6%, 70 basis points worse than the prior-year quarter. Operating margin was 8.1%, 70 basis points worse than the prior-year quarter. Net margin was 5.1%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $590.5 million. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $2.38 billion. The average EPS estimate is $2.08.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 175 members rating the stock outperform, and 82 members rating it underperform. Among 89 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 give ANN INC a green thumbs-up, and 25 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ANN INC is outperform, with an average price target of $30.20.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.