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Ann delivers satisfactory Q1 FY'12 sales
25 May '12
5 min read
During the first quarter of fiscal 2012, the Company opened seven new stores, comprised of two Ann Taylor stores, four LOFT stores and one LOFT Outlet store, and closed eight Ann Taylor stores, four LOFT stores and one LOFT Outlet store. Total store count at the end of the fiscal first quarter was 947, comprised of 274 Ann Taylor stores, 500 LOFT stores, 99 Ann Taylor Factory stores and 74 LOFT Outlet stores.
Kay Krill, President and CEO, said, "We are very pleased that our 2012 fiscal year is off to a strong start. We reported an excellent first quarter with significant increases in both sales and earnings per share. Our gross margin rate also improved dramatically from the fourth quarter of 2011, driven by increased profits at both the Ann Taylor and LOFT brands.
"By brand, LOFT once again delivered a phenomenal quarter, continuing its strong momentum across all channels. Clients responded positively to LOFT's entire product offering, its compelling value proposition and engaging in-store experience, all of which contributed to very strong conversion.
“During the quarter, the Ann Taylor brand continued to deliver top-line growth in its online and outlet channels. In the stores channel, we significantly reduced promotional activity as we focused on reinforcing the aspirational nature of the brand, which resulted in a higher gross margin rate and lower comparable sales versus the first quarter of 2011.
"Looking forward, Ann Inc. is well-positioned to deliver on our strategic and financial objectives for the year."
Outlook for Fiscal Second-Quarter and Full-Year 2012
For the fiscal second quarter of 2012, the Company expects total net sales to be $585 million, reflecting a total Company comparable sales increase in the mid-single digits. Gross margin rate performance is expected to approach 55.0%. Selling, general and administrative expenses are estimated to approach $280 million.
In terms of the full year outlook, the Company provided the following:
• The Company expects fiscal 2012 total net sales to be $2.375 billion, reflecting a total Company comparable sales increase in the mid-single digits.
• Gross margin rate performance is expected to be 55.0%.
• Total SG&A expenses in fiscal 2012 are expected to approach $1.140 billion.
• The Company's effective tax rate is expected to be approximately 40%.
• Capital expenditures are expected to be approximately $150 million.
• Total weighted average square footage for fiscal 2012 is expected to increase slightly, reflecting the opening of approximately 65 new stores, partially offset by the impact of downsizes at Ann Taylor stores and approximately 30 store closures. The Company expects to have approximately 985 stores at fiscal year-end.
• The Company expects to maintain its healthy balance sheet, including a disciplined approach to inventory management throughout the fiscal year.
Ann Inc. is the parent Company of Ann Taylor and LOFT, two of the leading women's specialty retail fashion brands in the United States.
Kay Krill, President and CEO, said, "We are very pleased that our 2012 fiscal year is off to a strong start. We reported an excellent first quarter with significant increases in both sales and earnings per share. Our gross margin rate also improved dramatically from the fourth quarter of 2011, driven by increased profits at both the Ann Taylor and LOFT brands.
"By brand, LOFT once again delivered a phenomenal quarter, continuing its strong momentum across all channels. Clients responded positively to LOFT's entire product offering, its compelling value proposition and engaging in-store experience, all of which contributed to very strong conversion.
“During the quarter, the Ann Taylor brand continued to deliver top-line growth in its online and outlet channels. In the stores channel, we significantly reduced promotional activity as we focused on reinforcing the aspirational nature of the brand, which resulted in a higher gross margin rate and lower comparable sales versus the first quarter of 2011.
"Looking forward, Ann Inc. is well-positioned to deliver on our strategic and financial objectives for the year."
Outlook for Fiscal Second-Quarter and Full-Year 2012
For the fiscal second quarter of 2012, the Company expects total net sales to be $585 million, reflecting a total Company comparable sales increase in the mid-single digits. Gross margin rate performance is expected to approach 55.0%. Selling, general and administrative expenses are estimated to approach $280 million.
In terms of the full year outlook, the Company provided the following:
• The Company expects fiscal 2012 total net sales to be $2.375 billion, reflecting a total Company comparable sales increase in the mid-single digits.
• Gross margin rate performance is expected to be 55.0%.
• Total SG&A expenses in fiscal 2012 are expected to approach $1.140 billion.
• The Company's effective tax rate is expected to be approximately 40%.
• Capital expenditures are expected to be approximately $150 million.
• Total weighted average square footage for fiscal 2012 is expected to increase slightly, reflecting the opening of approximately 65 new stores, partially offset by the impact of downsizes at Ann Taylor stores and approximately 30 store closures. The Company expects to have approximately 985 stores at fiscal year-end.
• The Company expects to maintain its healthy balance sheet, including a disciplined approach to inventory management throughout the fiscal year.
Ann Inc. is the parent Company of Ann Taylor and LOFT, two of the leading women's specialty retail fashion brands in the United States.
Ann Inc
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