AnnTaylor Stores Corp. (New York) has announced a 7.5 percent increase in total net sales for the four-week period ended July 30, 2005. By division, net sales dropped 8.8 percent at Ann Taylor stores but jumped 22.8 percent for Ann Taylor Loft.
Same-store sales for the period decreased 3.5 percent — down 10.3 percent for Ann Taylor, up 1.2 percent for Ann Taylor Loft.
For the second quarter of fiscal 2005, total net sales were up 7.6 percent — down 4.2 percent for Ann Taylor, up 17.6 percent for Ann Taylor Loft. Same-store sales were down 3.9 percent in the quarter — down 6.1 percent for Ann Taylor, down 3.2 percent for Ann Taylor Loft.
“During the month of July, we took the steps that were necessary to clear excess inventory and enable the company to enter the third quarter in a healthier inventory position,” said chairman, J. Patrick Spainhour. “Our summer end-of-season sales were successful in moving clearance units as intended, and, as expected, the heavy level of promotional activity that occurred throughout the quarter has had a negative impact on our gross margin. We feel confident that our leaner inventory position coupled with improved merchandise at both Ann Taylor and Loft lay the groundwork for better performance in the second half of the year, including improvements in gross margin.”
“While July is historically a clearance month, we were pleased with the continued positive reads we received on product delivered in July at both Ann Taylor and Loft, including a strong reception to our increased assortment of neutrals across all categories of the business,” said president Kay Krill. “Additionally, sales activity strengthened in week four, which was driven by not only the ‘wear-now’ nature of our clearance merchandise but also positive client acceptance of transitional August product. These results bode well for our fall and holiday seasons, which will increasingly reflect the changes we are making in our merchandise assortments to best meet the wardrobing needs of our Ann Taylor and Loft clients.”
During the month, the company did not open any new stores.