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Ann Inc. Reports Strong Results in Q2

Net income reached $35.6 million in the quarter, an increase of 16 percent versus the $30.7 million in the year-ago quarter.

Ann Inc., reporting strong results in a tough, promotional retail climate, said earnings per share rose 21 percent to $0.76 in the second quarter ended Aug. 3, compared with $0.63 in the second quarter of 2012.

Net income reached $35.6 million in the quarter, an increase of 16 percent versus the $30.7 million in the year-ago quarter.

Comparable sales increased 2.8 percent. At Ann Taylor, comparable sales increased 3.1 percent; Loft rose 2.5 percent.

 

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Total net sales for the quarter rose to $638.2 million, compared to $594.9 million in last year’s quarter.

“Ann Inc. delivered record earnings per share for the second quarter of 2013, which included a double-digit increase in net income and stronger sales versus the year-ago period,” said Kay Krill, chairman and chief executive officer. “I am especially pleased to report that both Ann Taylor and Loft achieved positive comparable sales and strong profitability in a highly challenging and competitive environment. In fact, the Ann Taylor brand generated its fifth consecutive quarter of positive comps. At Loft, performance was significantly stronger than first quarter with a positive comp on top of last year’s mid-single-digit comp growth.

“Looking ahead, both brands are well-positioned to drive top-line growth and strong profitability in the second half of the year.”

The company projects third quarter total  sales to be $655 million, reflecting a comp increase in the mid-single digits. For all of 2013, the company sees total sales reaching $2.5 billion, reflecting a mid-single digit comp gain.

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