ANN Raises Q4 Outlook, Shares Surge
Ann Taylor Stores Corp (NYSE: ANN) said today that it expects its fourth-quarter profits to surpass its prior forecast and be “substantially” ahead of the year-earlier level. The women's clothing retailer cited better-than-expected sales and gross margins as the reasons for its performance. Fourth-quarter sales are expected to be $470 million, compared to the prior guidance of a marginal decline from its third-quarter figure of $462.4 million. Comparable-store sales are expected to decline 7% at Ann Taylor and grow about 2% at the Loft chain, both surpassing ANN’s previous forecast.
Chief Executive Kay Krill said, “Much of the upside was a result of improved product assortments at both brands… Our top-line improvement and healthy gross margin performance also reflected the success of our planned promotional strategy and the benefit of our clean inventory position. We are entering the spring 2010 season with positive sales momentum at both brands driven by compelling merchandise and inventory that is positioned to support comparable store sales growth.”
ANN’s shares surged 12.77% to $15.10 in pre-market trading.
