New York City AnnTaylor Stores Corp. swung to a loss in the third quarter due to restructuring charges and a consumer-spending drop off, and said it would reduce capital spending to combat the weak environment.
Loss for the quarter ended Nov. 1 totaled $13.4 million, compared with a profit of $40.8 million last year. Revenue fell 12% to $527.2 million from $600.9 million a year ago.
“Our business turned soft in the third quarter, reflecting the dramatic deterioration in the overall economy and consumer spending—particularly during the latter part of the period," said AnnTaylor chief executive Kay Krill.
Women's apparel retailers have been among the hardest hit as consumers cut back amid financial-market turmoil, a shaky job market and tight credit.
The New York-based company said it will ramp up cost cuts, control inventory more tightly and focus on weathering the "very weak consumer environment we expect in the months ahead," according to Krill.
In an effort to save cash, the company said it "significantly scaled back capital spending for the next year," but did not give specifics.