"1Q comp trends were a mixed bag of strength at AT full-price offset by declines at AT Factory & LOFT," analysts said. "We note ANN's deal to be acquired by ASNA remains the only thing of real focus here."
The downgrade follows Ascena Retail Group (ASNA)'s announcement last week to acquire Ann. Ascena is an American retailer of women's clothing.
The deal, which is expected to close later this year, offers Ann shareholders $37.34 in cash and 68 cents a share of Ascena, the equivalent of $47 per share.
Ann is a national specialty retailer of women's apparel, shoes and accessories, sold under the Ann Taylor and LOFT brands.
TheStreet Ratings team rates ANN INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ANN INC (ANN) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share."