AnnTaylor Stores Corp. (NYSE:ANN) Reports Solid 4Q and Solid Momentum into 1Q

AnnTaylor Stores Corp. (NYSE:ANN) posted solid fourth fiscal quarter results above street consensus on Friday. The Company posted fourth fiscal quarter net earnings of $8 million or 14 cents per share compared to $41,000 or breakeven per share in the same quarter last year. Adjusted net income of 19 cents a share has been recorded compared to 5 cents a share in the previous year, 2 cents above the street consensus of 17 cents a share. Sales for the fourth quarter climbed 9.85% to $515.3 million from $469.1 million in the previous year period, slightly above the consensus estimate of $515.14 million. Comparable-store sales increased 11.0%. Operating margin increased 180 basis points year over year to 2.8%. Gross margin was 51.7% of net sales. Total SG&A dollars increased 4.3% to $251.9 million, in line with guidance. On a rate basis, total SG&A improved 260 basis points over 2009 to 48.9%. The company ended the quarter with total inventory up 14% and average inventory increased 11.9%. The Company announced the guidance for the first quarter of 2011 and said that it expects total net sales to approach $510 million, reflecting a total Company comparable sales increase in the mid-to-high single digits. For fiscal 2011, it expects total net sales of approximately $2.175 billion, reflecting a total Company comparable sales increase in the mid-single digits. Analysts are expecting the Company to report revenue of $ 488 million for the first quarter of 2011 and revenue of $2.116 billion for fiscal 2011. Shares of the company jumped $3.08 or 12.72% to $27.29 after opening at $27.38 with heavy volume of 10.92 million shares compared to the daily average of 2.85 million shares. The stock has 52 week range of $14.59-$28.24. The market capitalization of the stock stands at $1.58 billion with P/E of 24.83. AnnTaylor Stores Corp., through its wholly owned subsidiaries, is a specialty retailer of women's apparel, shoes and accessories sold primarily under the Ann Taylor and LOFT brands. Disclaimer: The assembled information distributed by epicstockpicks.com is for information purposes only, and is neither a solicitation to buy nor an offer to sell securities. Epicstockpicks.com does expect that investors will buy and sell securities based on information assembled and presented herein. EpicStockPicks.com will not be responsible in any way for or accept any liability for any losses arising from an investor's reliance on or use of information obtained from our website or emails. PLEASE always do your own due diligence, and consult your financial advisor.
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