Womens fashion retailer Ann sales up 7.2% in Q4 FY'13

Fiscal Year 2012 Results

Total net sales for the full year of fiscal 2012 were $2.4 billion, compared with net sales of $2.2 billion in fiscal 2011.  By brand, net sales across all channels of the Ann Taylor brand totaled $945.2 million in fiscal 2012, compared with net sales of $907.9 million in fiscal 2011.  At the LOFT brand, net sales across all channels were $1,430.3 million in 2012, compared with net sales of $1,304.6 million in 2011.

Total Company comparable sales for the full year of fiscal 2012 increased 3.3%.  At the Ann Taylor brand, total comparable sales increased 1.1%, including an increase of 1.8% at Ann Taylor, which was partially offset by a decrease of 0.5% in the Ann Taylor Factory channel. 

At the LOFT brand, total comparable sales increased 4.8%, including an increase of 5.8% at LOFT, which was partially offset by a decrease of 1.5% in the LOFT Outlet channel. Gross margin, as a percentage of net sales, was 54.8%, compared with 54.6% in fiscal 2011.

Selling, general and administrative expenses were $1,135.6 million versus $1,062.6 million in fiscal 2011. As a percentage of net sales, selling, general and administrative expenses decreased to 47.8% in fiscal 2012, reflecting a 20 basis-point improvement from the prior year.

Operating income for the full year of fiscal 2012 was $166.8 million, reflecting a 15% increase compared with operating income of $145.5 million in 2011.

Net income totaled $102.6 million, or $2.10 per diluted share, for fiscal 2012, compared with net income of $86.6 million, or $1.64 per diluted share, for fiscal 2011.

The Company ended the year with approximately $167 million in cash and cash equivalents.  During fiscal 2012, the Company repurchased approximately 4.9 million of its outstanding shares at a total cost of $135 million.

Total Company inventory per square foot, including inventory for stores and e-commerce, was flat at the end of fiscal 2012, compared with fiscal 2011, which reflected flat inventory per square foot at Ann Taylor, LOFT and the factory outlet channel, over the same period last year.

During fiscal 2012, the Company opened 63 stores, comprised of 11 Ann Taylor stores, three Ann Taylor Factory stores, 26 LOFT stores and 23 LOFT Outlet stores and closed 32 stores, comprised of 16 Ann Taylor stores, 14 LOFT stores, one Ann Taylor Factory store and one LOFT Outlet store. 

The total store count at the end of the fiscal year was 984, comprised of 275 Ann Taylor stores, 101 Ann Taylor Factory stores, 512 LOFT stores, and 96 LOFT Outlet stores.

Ann Inc