Earnings Preview: AnnTaylor Stores Corp.

May.19.09 | About: Ann, Inc. (ANN)

AnnTaylor Stores Corp. (NYSE:ANN) is expected to report Q1 earnings before the market open on Wednesday, May 20 with a conference call scheduled for 8:30 am ET.


Analysts are looking for a loss of (13c) on revenue of $455.69M. The consensus range is (41c)-(1c) for EPS, and revenue of $404.46M-$495M, according to First Call. At the company's annual meeting, CEO Kay Krill forecast an EPS loss "that is much better than the current First Call consensus estimate." She said the company's performance in the quarter benefited from strong gross margins and significant expense savings, though top-line results continued to be negatively impacted by the significant decline in consumer spending and by a product offering at the Ann Taylor division that was not compelling. Krill said the Q1 gross margin rate was "much higher" than Q4's gross margin rate.

Analyst Views

UBS analyst Roxanne Meyer recently said that while she sees some modern looks in the company's stores, they're "likely not resonating" with consumers. She said that if sales continue to struggle, the second half of the year could be a "wild card."