AnnTaylor Outlook Lifts Sector
NEW YORK (
) --
AnnTaylor
(ANN)
upped its fourth-quarter outlook on improving sales and gross margins.
The news sent shares soaring 12.1% to $15.01, and led up other women's retailers.
Talbots
(TLB)
is advancing 7.8% to $13.19,
Coldwater Creek
(CWTR)
is rising 4.2% to $4.70,
Chico's
(CHS) - Get Report
is gaining 4.6% to $13.89 and
New York & Company
(NWY)
is increasing 1.8% to $3.91.
The women's retailer said earnings will be substantially higher than last year. AnnTaylor now expects sales of $470 million compared with previous forecast of $464.2 million. Comparable-store sales are expected to be flat, with a 7% decline at its namesake store and 2% increase at the Loft chain.
"Much of the upside was a result of improved product assortments at both brands," CEO Kay Krill said in a statement. "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."
Analysts expect the company to lose 16 cents on sales of $457.5 million.
Several retailers, including
DSW
(DSW) - Get Report
,
Tiffany
(TIF) - Get Report
and
Big Lots
(BIG) - Get Report
, have upped their outlook heading into fourth-quarter earnings season.
-- Reported by Jeanine Poggi in New York.
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