Talbots Inc. (NYSE: TLB), the fashion retailer that sold its J. Jill brand in the most recent quarter, is scheduled to discuss its second-quarter 2009 results Wednesday in a conference call at 10:00 AM ET, hosted by CEO Trudy Sullivan and other members of the senior management team. You can catch the live webcast of the call on the company's website.

For the three months that ended in July, analysts surveyed by Thomson Reuters expect the Massachusetts-based company to report that its net loss widened from a year ago to $0.52 per share. Revenue for the quarter is expected to have fallen 39.1% to $309.3 million.

Ann Taylor Stores (NYSE: ANN) reported earnings for the second quarter this past Friday. I didn't think the results were good at all, but the stock did close higher by the end of the trading session. On an adjusted basis, net income dropped like a rock to 6 cents per share from 53 cents per share in the year-ago period. According to Bloomberg, Ann Taylor beat estimates by 3 cents.

Interestingly enough, the market did agree with me early on. That Bloomberg piece mentioned how the shares experienced a decline upon the release. Later on, the shares rebounded as buyers stepped in to partake of a perceived opportunity.

Does it make sense to buy a stock that is up 300%?

If so, I would want to be darn sure about future earnings prospects needed to support a premium valuation.

In the case of AnnTaylor (NYSE: ANN), I'm not convinced that future prospects are secure.

Recently, the company announced cautious guidance suggesting that difficulties will persist through the remainder of the year. This comes in the aftermath of announcing a first quarter loss and decline in same-store sales.

While consumer confidence might have soared in April, the move seems to be in response to a two-month surge in stocks versus any real strength on the home front.

The jobs market is still poor with stagnant or declining wages. Corporations are still in lay-off mode and oil prices are marching ever higher. In other words, there are still hurdles to overcome before the "all clear" can be given.

I don't mean to rain on the parade of recovery, but let's not get too far ahead of ourselves.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• AnnTaylor Stores Corp. (NYSE: ANN) reported a smaller-than-expected Q1 loss as sales slumped.
• Barnes & Noble Inc. (NYSE: BKS) smaller-than-expected Q1 net loss sent shares higher.
• Children's Place Retail Stores Inc. (NASDAQ: PLCE) solid Q1 results were in line with expectations.
• Dick's Sporting Goods Inc. (NYSE: DKS) posted higher-than-expected Q1 results but same-store sales fell.
• Gap Inc. (NYSE: GPS) lower Q1 earnings beat expectations and lower revenue was in line.

Women's apparel retailer AnnTaylor Stores (NYSE: ANN) was the latest retailing name to announce its quarterly earnings results. This morning, the company reported a first-quarter loss of $2.31 million, or four cents per share, as sales slumped 28% during the reporting period. This compares to net income of $25.90 million (43 cents per share) ANN earned in the year-earlier quarter.

On the plus side, the four-cent loss easily topped Wall Street estimates; analysts were expecting a loss of 13 cents per share. Sales, on the other hand, fell 28% to $426.75 million, falling shy of the consensus view of $454.66 million. Same-store sales at the namesake chain were down 42.7% while LOFT sales were off 24.2%. Personally, I prefer LOFT as a cheaper, slightly less conservative option, and evidently my fellow shoppers feel the same way.

The Talbots, Inc. (NYSE: TLB), a retailer targeted to women and a colleague of businesses such as Macy's (NYSE: M) and Ann Taylor (NYSE: ANN), posted Q4 earnings on Monday after the bell. Actually, they weren't earnings, they were losses. And they were worse than last year's numbers. The chain said it lost, on an adjusted basis, $2.40 per share from continuing operations. In the fourth quarter of the previous fiscal year, Talbots lost only $0.13 per share from continuing operations.

In terms of expectations, this source says that the loss was much wider than anticipated. Net sales for the quarter declined 23%. Cash from operations is a fraction of what it once was. And same-store sales simply bombed, diving almost 25%!

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• American International Group Inc. (NYS: AIG) posted a record loss even as it asks for more taxpayer funds.
• AnnTaylor Stores Corp. (NYSE: ANN) shares sank after it missed Q4 expectations by a wide margin.
• AutoZone Inc. (NYSE: AZO) reported strong Q2 results, sending shares upward toward its 52-week high.
• Big Lots Inc. (NYSE: BIG) shares soared after it reported better-than-expected numbers for Q4.
• Chico's FAS Inc. (NYSE: CHS) Q4 loss widened on impairment charges and severance costs.

Ann Taylor (NYSE: ANN) is not the darling of Wall Street today. As I write this, the retailer's shares have lost 30% of their value. Trading volume is heavy. The company missed Wall Street's estimates by a pretty wide margin.

The call, was for an adjusted loss of $0.55 per share in the fourth quarter. According to the press release, Ann Taylor lost $1.03 per share on an adjusted basis. Last year at this time, there was a profit of $0.19 per share. What a difference a year makes. By the way, if you include all the GAAP stuff in the current Q4, Ann Taylor lost an amount equal to the mark of the beast. I don't even want to write the evil number out, but it begins with a 6 if you want a hint.

The Dow was up nearly 500 points on Friday. Everything's fine, right? Not on your life. It's going to be a lousy Christmas for mall retailers such as Gap (NYSE: GPS) and Abercrombie & Fitch (NYSE: ANF), and it might be especially lousy for AnnTaylor (NYSE: ANN). What a pathetic story this one is.

AnnTaylor reported earnings for the third quarter yesterday, and it's stock closed down more than 9% on better-than-average volume. Here's why: the bottom line broke even on an adjusted basis, the analysts were calling for a penny earnings per share, and same-store sales plummeted -- I mean plummeted -- more than 19%. Those comps fell like the public approval rating of a CEO's compensation package in the context of the current economic quagmire (well, actually, they didn't fall that badly). The fact that the stock dropped only about 9% is pretty amazing. I think the decline should have gone well into the double digits. After all, management at AnnTaylor really has no idea how its Christmas season will ultimately turn out. Well, they have a little bit of an idea. They know it's going to stink. Badly. I suppose it was the euphoria of the day that kept a check on the stock's decline.

Retail is in the doghouse. Even biggies like Walmart (NYSE: WMT) and Target (NYSE: TGT) are going to have to hustle more than ever before to keep ahead of their competitors in this dreadful recessionary environment and hope that they can convince their shoppers to pull out as much of the green stuff as possible at their respective points of sale. It won't be easy. And if the big brand names are finding it challenging out there, then a colleague like AnnTaylor might not have much of a chance of bringing traffic out from the cold and onto the sales floor. As far as the shares go, I think they will be heading lower. I mean, I don't think there's much of a mystery there. I can't see what would possibly make the shares go higher from here. Then again, we have been trading on an irrational playfield as of late, so I do suppose anything is possible. For me, I'll stay away from AnnTaylor and make certain that my portfolio has nothing to do with it.

Disclosure: I don't own any company mentioned; positions can change at any time.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• AnnTaylor Stores Corp. (NYSE: ANN) posted dismal Q3 results as same-store sales sank.
• Autodesk Inc. (NASDAQ: ADSK) declined to release an outlook for next year due to the economic turmoil.
• BASF AG (OTC: BASFY) profit warning resulted in analysts' upgrades and downgrades both.
• Dell Inc. (NASDAQ: DELL) handily beat Q3 expectations due in part to share buybacks.
• GameStop Corp. (NYSE: GME) missed Q3 earnings expectations and same-store sales declined.
• Hewlett-Packard Co. (NYSE: HPQ) forecast Q4 results above estimates on cost cutting and global reach.
• Home Depot Inc. (NYSE: HD) reported better-than-expected Q3 results though sales had declined.
• LDK Solar Co. Ltd. (NYSE: LDK) Q3 earnings more than doubled and revenued surged 70%.
• Lowe's Cos. Inc. (NYSE: LOW) posted better-than-expected Q3 results though same-store sales slipped.
• McDonald's Corp. (NYSE: MCD) 2009 earnings prospects resulted in an analyst's upgrade.
• Nokia Corp. (NYSE: NOK) earnings warning resulted in upgrades from a few analysts.
• PetSmart Inc. (NASDAQ: PETM) topped expectations and forecast full-year profits higher than estimates.
• Suntech Power Holdings Co. (NYSE: STP) fell short of earnings expectations and lowered its guidance.
• Trina Solar Ltd. (NYSE: TSL) Q3 earnings quadrupled and revenue more than tripled on increased demand.

Last week, JA Solar Holdings Co. Ltd. (NASDAQ: JASO) posted a quarterly loss and lowered its guidance. But as interest in alternative energy continues to grow, analysts polled by Thomson Financial are still looking for good things from solar energy concerns scheduled to report earnings this week.

Strong growth at Trina Solar Ltd. (NYSE: TSL) in the third quarter prompted it to lift its guidance back in October. Analysts expect the Chinese company to post profits that are 76.3% higher than a year ago, or $1.18 per share on revenues of $268.4 million (+225.0%). Though Trina Solar missed estimates in the second quarter, analysts on average recommend buying TSL. Shares are down 81.4% from a year ago and trading near an all-time low.

Earnings of rival LDK Solar Co. Ltd. (NYSE: LDK) are expect to have risen 47.9% to $0.71 per share on revenues of $486.7 million (+206.6%). Also based in China, LDK has not missed estimates in recent quarters; in fact, it blew past expectations in the second quarter. Yet the consensus recommendation is to hold LDK. Like Trina Solar, LDK's shares are trading near an all-time low; the share price has fallen 50.0% in the past year.

Analysts anticipate third-quarter earnings for Canadian Solar Inc. (NASDAQ: CSIQ) to be a whopping 96.3% higher than a year ago, or $0.54 per share on revenues of $248.0 million (+154.5%). The company easily topped estimates in the previous quarter. ReneSola Ltd. (NYSE: SOL) and Suntech Power Holdings Co. Ltd. (NYSE: STP) are also expected to report earnings growth of 29.7% ($0.37 per share) and 23.8% ($0.42 per share), respectively. All three of these stocks reached 52-week lows last week, and all are considered buys.

All retailers want their workers to operate in an efficient manner. Question is, how should companies like Wal-Mart (NYSE: WMT), Target (NYSE: TGT), and Gap (NYSE: GPS) accomplish the goal of eliminating inefficiencies?

One way is to use productivity software to coerce employees into making sure they are putting forth their best effort. An excellent article at The Wall Street Journal shows how AnnTaylor (NYSE: ANN) is using computer monitoring to ensure that workers are aware of their strengths and weaknesses when it comes to selling. According to the article, employees are made aware of their average sales per hour and the yield per transaction. If you don't pull your weight, you won't get scheduled as much. In fact, the article implies that it isn't unheard of for an employee to go from 30 hours one week to 8 the next. Again, it's all based on your stats. If you sell more, you work more.

It's that simple, and as one might imagine, the adjective "Darwinian" came up in the discussion. That's because this philosophy of linking hours to performance has upped the competitive ante among a store's team. I think this is one of the problems that such a system creates. If employees are at each other's throats trying to score a sale, then the team dynamic disintegrates. That is never a good thing. Indeed, team unity rules in any organization, and it is paramount when it comes to good customer service.

Rival home improvement chains Home Depot Inc. (NYSE: HD) and Lowe's Companies Inc. (NYSE: LOW) are scheduled to report quarterly results this week. Not surprisingly, given the ongoing housing slump, analysts surveyed by Thomson Financial on average expect both companies to post earnings lower than in the same period a year ago. For Home Depot, that's 61 cents per share, down 20.8%, and for Lowe's, 56 cents per share, down 16.4%. Meanwhile, cabinet maker American Woodmark Corp. (NASDAQ: AMWD), for whom Home Depot and Lowe's are major distributors, is also expected to report lower earnings: 11 cents per share, down 67.6%.

The presidential campaigns have prompted much discussion of energy policy and alternative energy sources. Some solar-energy-related concerns are scheduled to report this week, and expectations seem to be high. Trina Solar Ltd. (NYSE: TSL) is expected to report 81 cents per share earnings, up 67.9%; ReneSola Ltd. (NYSE: SOL) is expected to post earnings of 32 cents per share, up 62.5%; and Suntech Power Holdings Co. (NYSE: STP) is expected to have earnings of 32 cents per share, up 21.9%. Even China Sunergy Co. Ltd. (NASDAQ: CSUN) is expected to have swung to a profit of 3 cents per share, from a per-share loss of 14 cents a year ago.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• AnnTaylor Stores Corp. (NYSE: ANN) sees Q1 profits beating estimates but reaffirmed the full-year outlook.
• Blockbuster Inc. (NYSE: BBI) beat Q1 earnings expectations but fell short of revenue estimates.
• Electronic Arts Inc. (NASDAQ: ERTS) posted strong Q4 and full-year results on titles such as Rock Band.
• Fossil Inc. (NASDAQ: FOSL) forecast Q1 earnings just a penny below analysts' estimates.
• IMAX Corp. (NASDAQ: IMAX) doubled its Q1 loss and missed Wall Street's expectations.
• JC Penney Co. Inc. (NYSE: JCP) profits fell 50%, and it predicted trouble would continue through the year.
• Kohl's Corp. (NYSE: KSS) posted a smaller-than-estimated Q1 profit decline and cut its full-year outlook.
• Liz Claiborne Inc. (NYSE: LIZ) swung to a Q1 loss on restructuring but beat analysts' expectations.
• Lumber Liquidators Inc. (NYSE: LL) posted strong Q1 results despite the housing slump.
• Macy's (NYSE: M) beat low Q1 expectations despite weak same-store sales.
• Nissan Motor Corp. (NASDAQ: NSANY) Q4 profit surged but it warned of lower profits this year.
• Nordstrom Inc. (NYSE: JWN) posted smaller-than-estimated Q1 profit decline and cut its full-year outlook.
• Priceline.com Inc. (NASDAQ: PCLN) beat Q1 expectations due to increased bookings.
• Sirius Satellite Radio Inc. (NASDAQ: SIRI) posted a narrower Q1 loss in line with expectations.
• Sony Corp. (NYSE: SNE) swung to a Q4 profit but fell short of Wall Street estimates.
• Sprint Nextel Corp. (NYSE: S) beat low Q1 estimates as its loss widened on charges and lost subscribers.
• Tiffany & Co. (NYSE: TIF) projected beating Q1 earnings forecasts and raised its dividend.
• Wal-Mart Stores Inc. (NYSE: WMT) posted Q1 profits up on international growth and bargain shoppers.
• Whole Foods Market Inc. (NASDAQ: WFMI) Q2 profits fell due to the Wild Oats acquistion.
• XM Satellite Radio (NASDAQ: XMSR) reported a bigger-than-expected Q1 loss and a surge in subscribers.