Home / Knowledge / News / Apparel/Garments / Q3FY15 net income drops 20% at women's retailer Ann
Q3FY15 net income drops 20% at women's retailer Ann
25
Nov '14
In the third fiscal quarter ending November 1, 2014, net income at women’s apparel retailer and NYSE listed, Ann Inc, dropped just a shade under 20 per cent, from the same quarter of 2013.

Net income at Ann slipped to $33.1 million or $0.72 per diluted share in the third quarter of 2014 or down 19.66 per cent from $41.2 million or $0.89 per diluted share in the third quarter of 2013.

On a GAAP basis, Ann said net income for the reporting quarter was $29.9 million, or $0.65 per diluted share, which includes $3.2 million or $0.07 per diluted share after-tax charge associated with the closure of Ann Taylor's Madison Avenue store.

Net sales for the third quarter of 2014 totalled $646.8 million as against $657.5 million in the corresponding quarter of 2013.

By brand, net sales across all channels of the Ann Taylor brand amounted to $233.0 million compared with net sales of $249.2 million in the year ago quarter.

At the LOFT brand, net sales across all channels, including Lou & Grey, were $413.8 million as against net sales of $408.4 million in the prior year third quarter.

Comparable sales for the quarter declined 4.3 per cent compared to an increase of 3.7 per cent in the third quarter of 2013.

Gross margin, as a percentage of net sales was down 310 basis points from the year earlier third quarter to 52.6 per cent.

“Gross margin performance in the third quarter of 2014 includes the impact of around $5 million, or 80 basis points, in incremental air freight costs as a result of labour uncertainty at the West Coast ports, as well as the impact of continued traffic challenges, a highly competitive promotional environment and soft product performance in select categories at Ann Taylor,” the retailer said.

The women’s retailer reported third quarter of 2014 SG&A expenses of $293.2 million, which includes impact of around $5 million related to closure of Ann Taylor's Madison Avenue store.

Excluding this charge, Ann said, SG&A expenses would have been $288.2 million, down from $295.8 million, it reported in same quarter of 2013.

As a percentage of net sales, SG&A expenses were 45.3 per cent or 44.6 per cent excluding the impact of the aforementioned charge, down from 45.0 per cent, the retailer reported last year.

According to Ann, this improvement was due to lower marketing and performance-based compensation expense, as well as ongoing savings associated with its first quarter of 2014 restructuring.

Excluding the aforementioned charge, operating income in the quarter under review fell to $51.7 million or $46.7 million on a GAAP basis as against $70.4 million in the third quarter of 2013.

The Company ended the quarter with approximately $110 million in cash and cash equivalents.

Total inventory per square foot at the end of the third quarter rose around 8 per cent year-on year, from 22, 3 and 8 per cent hikes at Ann Taylor, LOFT and factory/outlet channel, respectively. (AR)

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 25th Mar 2017

GST to positively impact retail value chain: CBRE

The implementation of the Goods and Services Tax (GST) bill in India...

Textiles | On 25th Mar 2017

MEGlobal to build first ever US MEG plant

Monoethylene glycol (MEG) producer MEGlobal plans to construct a new...

Courtesy: Ulster Carpet

Textiles | On 25th Mar 2017

Ulster Carpets acquires Griffith Textile Machines

Northern Ireland based manufacturer of carpets, Ulster Carpets said...

Interviews View All

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search