NEW YORK (TheStreet) -- Shares of Ann Inc. (ANN) are lower by 1.41% to $37.80 in pre-market trading on Friday, after the company announced inventory at the end of the 2014 third quarter was up by 8%, sparked by a rise at its Ann Taylor stores, the Wall Street Journal reports.
The specialty retailer of women's apparel, which operates through different brand names, said inventory at the Ann Taylor chain spiked by 22%, due to a change in merchandising, the Journal added.
Ann also said the company would post its first drop in comparable store sales in 10 quarters, by 4.3%.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
"Our results for the third quarter were slightly ahead of the outlook we provided earlier this month. As previously noted, our performance reflected weak traffic across the industry, a highly promotional retail environment and the impact of labor uncertainty at the West Coast ports, which resulted in product shipment delays in the first half of the quarter and higher air freight expense later in the period," company CEO Kay Krill said.
For the 2014 third quarter Ann said net income was $29.9 million, or 65 cents per diluted share, compared to adjusted net income of $41.2 million, or 89 cents per diluted share for the 2013 third quarter.
Net sales for the latest quarter were $646.8 million versus $657.5 million for the year ago period.
Analysts polled by Thomson Reuters expected EPS of 68 cents on revenue of $648.27 million for the quarter.
Separately, TheStreet Ratings team rates ANN INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ANN INC (ANN) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
You can view the full analysis from the report here: ANN Ratings ReportANN data by YCharts