ANN beats by $0.05, misses on revs; guides Q2 revs above consensus; guides FY16 revs in-line. Reminder: ascena retail group to acquire ANN; should close in 2H15
Reports Q1 (Apr) earnings of $0.37 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus Estimate of $0.32; revenues rose 1.2% year/year to $597.7 mln vs the $604.79 mln consensus.
- Co issues upside guidance for Q2, sees Q2 revs of $660 mln vs. $658.67 mln Capital IQ Consensus Estimate.
- Co issues in-line guidance for FY16, sees FY16 revs of $2.56 bln vs. $2.58 bln Capital IQ Consensus Estimate.
- As previously reported on May 18, 2015, ascena retail group (ASNA) and ANN INC. (ANN) announced that they have entered into a definitive merger agreement under which ascena will acquire ANN INC. for a combination of cash and stock in an accretive transaction.
- Upon closing, ANN INC. stockholders will receive $37.34 in cash and 0.68 of a share of ascena common stock in exchange for each share of ANN common stock. At closing of the transaction, ANN INC. stockholders will own ~16% of ascena. The transaction is expected to close in the second half of 2015,