ANN Management Has Missed its Quarterly
GPM% Guidance in 6 of Past 9 Quarters

Ann Taylor (ANN – $27.64) pre-announced disastrous earnings results in Q4 2012 versus the company’s previous guidance.

The company has now missed its quarterly GPM% guidance in 6 of the past 9 fiscal quarters (and, 3 consecutive Q4’s). This represents one of the worst guidance records in specialty apparel over the past few years.

ANN has been stuck in the 6.0% to 7.0% EBIT margin range for too long. At this juncture, any hopes of improving the level of profitability only appear to be wishful thinking.