Analysts upbeat on Ann partly due to pricing

NEW YORK — Two analysts are upbeat on women's clothing company Ann Inc., citing appealing prices for the company's Ann Taylor and Loft brands in the fall and the opportunity for Loft to gain market share from faltering rivals.

Ann Taylor stores have struggled in comparison to Loft because they carry more expensive, wear-to-work items. Last month the New York company reported that it reduced Ann Taylor promotions in the first quarter, which made it more profitable but cut into sales.

Nomura Equity Research analyst Paul Lejuez said in a client note that Ann Taylor stores will have the chance to turn the business around because they are going to focus on more targeted promotions in the fall along with "more approachable" opening prices.

Leujuez maintained a "Buy" rating and $31 price target.

Meanwhile, Margaret Whitfield of Sterne, Agee & Leach says Loft stores should be able to capitalize on store closings by Coldwater Creek Inc. and Christopher & Banks Corp., which enable Loft to move into the small and midsized cities that those brands used to serve.

"We believe the Coldwater Creek and Christopher & Banks closures provide a significant opportunity for Loft to gain market share in currently underpenetrated markets," the analyst wrote.

Ann's stock shed 18 cents to $25.17 in Wednesday afternoon trading.