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Earnings Analysis: 
Ann Taylor's Net Plunges on Unfavourable Weather
Author: Albena Toncheva
123jump.com
Last Update: 10:54 AM ET May 19 2005


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Ann Taylor Stores Corp., the women's clothing retailer, said its 1Q net income declined 46% due to the unfavourably cool spring weather. The company believes, however, that it will manage to meet analysts' estimates for yearly earnings per share because it forecasts better performance in the second half of the fiscal year.

 
The company maintained its yearly guidance of earnings per share from continuing operations to increase 10% to 20% vs. last year. Analysts expect earnings, on yearly basis, of $1.94 a share.

Claire's Stores Inc. (CLE: chart), jewelry and accessories retailer, posted that 1Q earnings gained 7% on 7.5% higher sales. For the three months ended April 30, net income increased to $29.7 million, or 30 cents a share, versus $27.7 million, or 28 cents, in the year-ago quarter. Sales grew to $302.7 million vs. $281.6 million. Same-store sales, those from stores open at least a year, advanced 5%. Analysts expected 27 cents.

For 2Q Claire's expects profit of 30 to 33 cents a share on revenue of $317 million to $323 million. Analysts are looking for 35 cents for the quarter.
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