Ann Inc (ANN) Earnings: An Early Look

We’ve already gotten a sense of just how bad ANN’s fourth quarter will be, as the company announced preliminary results early last month. With poor anticipated revenue figures resulting from weak holiday sales and the fallout from Hurricane Sandy during November, Ann Inc (NYSE: ANN) shares dropped 7% after the news was announced. The company’s Loft stores were particularly weak, having to boost promotions to dump inventory. Even modest growth from the Ann Taylor segment wasn’t enough to offset overall weakness.

Admittedly, Ann Inc (NYSE: ANN) isn’t the only women’s retail chain to run into challenges. Coldwater Creek Inc. (NASDAQ:CWTR) widened its loss estimates for the holiday quarter back in January, citing a similar need for promotional sales that hit the company’s long-struggling margins. Even the relatively strong Chico’s FAS, Inc. (NYSE:CHS), which has undergone a highly successful restructuring over the past couple of years, has given up some its share-price gains, as it announced slowing same-store sales gains during the holiday quarter.

In its quarterly report, watch for ANN to discuss its strategy to get same-store sales back up, as well as how it can use its online presence to boost revenue. Given how quickly trends get established in this industry, it’s essential for ANN to nip any emerging downward trend in the bud now before it gets worse.

The article ANN Earnings: An Early Look originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool has no position in any of the stocks mentioned.

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