Ann Taylor Swings to Loss in 3Q
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.
Barnes & Noble posts 3Q loss, lowers outlook
NEW YORK Barnes & Noble reported sales for the third quarter of $1.1 billion, a 4.4% decrease compared to the prior year. Barnes & Noble store sales decreased 4.4% to $971 million, with comparable-store sales decreasing 7.4% for the quarter.
The third quarter net loss was $18.4 million or 34 cents per share.
“A significant drop off in customer traffic and consumer spending impacted our business in the third quarter,” said Steve Riggio, ceo of Barnes & Noble. “In a challenging environment with a comparable-store sales decline of 4.6% this year, the company has aggressively managed expenses to operate profitably. Furthermore, the company is taking measures to reduce expenses for the balance of this year and next.”
For the fourth quarter, the company expects comparable-store sales at Barnes & Noble stores to decline 6% to 9%. Fourth quarter earnings per share is expected to be in a range of $1.40 to $1.70. For the full year, the company now expects comparable-store sales at Barnes & Noble stores to decline 5% to 6%. Full year earnings per share is expected to be in a range of $1.30 to $1.60, compared to previous guidance of $1.70 to $1.90.
Dollar General pushes back Thanksgiving sales
GOODLETTSVILLE, Tenn. Dollar General announced that it will offer holiday deals a full weak ahead of the traditional Thanksgiving holiday shopping weekend.
Starting the Sunday before Thanksgiving, customers will find special savings on items such as DVD players, holiday decorations and gaming systems.
Promotions will continue during the Thanksgiving weekend with deals on cell phones, jeans and MP3 players.