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.