Ann Inc. forecasts Q2 same-store sales drop, cuts guidance

New York – Ann Inc. expects to report a 2.3% decline in consolidated same-store sales for the second quarter of fiscal 2014. Total company net sales are now expected to be $648 million.

At the Ann Taylor brand, total comparable sales increased 0.7%, reflecting an increase of 2% at Ann Taylor, partially offset by a decline of 1.9% in the Ann Taylor Factory channel. At the Loft brand, total comparable sales declined 4.1%, reflecting a decrease of 5.2% at Loft and an increase of 0.3% in the Loft Outlet channel. Selling, general and administrative expenses are expected to be $286 million.

“Despite positive performance through mid-June, the remainder of the second quarter proved more challenging, with soft traffic across the industry and a highly promotional environment,” said Kay Krill, president and CEO. “While we delivered a positive comp for the quarter at Ann Taylor, we were disappointed in our performance at Loft, which experienced continued softness in basic knit tops that represent a meaningful component of Loft's summer assortment. We took action to move through summer product, which pressured gross margin but enabled us to end the quarter with clean inventories at both brands."
 

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