Earnings Preview: AnnTaylor Stores

| About: Ann, Inc. (ANN)

AnnTaylor Stores (NYSE:ANN) is expected to report Q4 earnings before the market open on Friday, March 6 with a conference call scheduled for 8:30 am ET.


Analysts are looking for a loss of (55c) on revenue of $488.68M. The consensus range is (72c)-(27c) for EPS, and revenue of $5468.7M-$500M, according to First Call. In November, AnnTaylor forecast Q4 same store sales down about 25% and said it sees FY09 capital spending less than $60M. The company, which said it would take a very conservative approach to buybacks, did not provide further guidance due to volatility.

Analyst Views

As conditions have not improved, Friedman Billings expects the company will continue to withhold guidance. The firm believes SSS have continued to decline over the quarter, and that sales were "bought with heavy discounting." The firm expects gross margins to remain under pressure and says the Loft division "may be doing worse" than the Stores division at this point. Wedbush sees risk to its Q4 EPS estimate for the retailer of (55c) due to "lackluster" traffic trends and greater markdowns. The firm currently has a Hold rating and $55 target on the stock.