Costs Hurt Ann’s Q4 Profits

Air-freight costs due to the West Coast port situation impacted Ann Inc.’s fourth-quarter profits. For the three months ended Jan. 31, net income dropped to $262,000, or 1 cent a diluted share, from $4.7 million, or 10 cents, a year ago. The company said incremental pre-tax air freight costs of $8.3 million, or 11 cents a diluted share, impacted the quarter’s results. Excluding the costs, diluted earnings per share would have been 12 cents. Net sales rose 3.9 percent to $647.4 million from $623.3 million. Comparable-store sales rose 1 percent. By brand, comps at Ann Taylor fell 0.4 percent and were down 1.5 percent at the Ann Taylor Factory channel. Comps were up 1.9 percent at Loft, reflecting a 1 percent gain at Loft stores and a 6.6 percent spike in the Loft Outlet channel. Kay Krill, president and chief executive officer, said, “Despite a highly promotional and competitive environment, Ann Inc. achieved positive comparable sales and effectively managed expenses in the fourth quarter.” RELATED CONTENT: WWD Earnings Tracker >> Click Here for the WWD Global Stock Tracker >>

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