This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Ann Taylor Stumbles on Lowered Outlook

NEW YORK -- Shares of Ann Taylor (ANN) tumbled to a fresh low on Thursday, after the women's retailer lowered its third-quarter sales outlook below Wall Street expectations because of a tough economy.

The stock declined $0.52, or 9.72%, to a seven-year low of $4.83.

Ann Taylor forecast third-quarter sales of $527 million, down 12% from $601 million last year. Analysts polled by Thomson Reuters expect higher sales of $567.3 million.

Ann Taylor also expects earnings per share, excluding restructuring and non-cash impairment costs, to break even. Analysts expect earnings of 46 cents per share.

"The dramatic deterioration in both the financial markets and the macroeconomic environment in September and October has put additional pressure on the retail industry, in general, and the women's apparel sector," President and Chief Executive Kay Krill said in a statement.

Krill said the company is moving "more aggressively" to accelerate ways to trim costs, and savings from a restructuring are expected to exceed previous estimates.

The company expects to total ongoing annual savings of between $80 million and $90 million over three years, compared with the $50 million previously expected, but restructuring costs are expected to range between $65 million and $70 million over the same time.

Same-store sales in the third quarter dropped 19%, with trends weakening dramatically as the quarter progressed. Same-store sales is an important retail metric that measures sales at stores open at least one year.

For the Ann Taylor division, same-store sales declined 25%, and same-store sales declined 15% for the Loft division.

Looking ahead, the company expects current weakness in consumer spending to persist through the fourth quarter of 2008 and 2009. It plans to update its guidance when it reports earnings later this month.

Copyright 2008 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $132.65 1.82%
FB $81.91 0.47%
GOOG $555.37 -1.71%
TSLA $231.55 6.01%
YHOO $44.36 -0.36%

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs