Home / Knowledge / News / Apparel/Garments / Ann Taylor expands cost-cutting plan & improve profitability
Ann Taylor expands cost-cutting plan & improve profitability
31
Jul '09
AnnTaylor Stores Corporation said that it is expanding its previously announced restructuring initiatives and taking further actions to reduce the Company's cost structure and improve profitability. These actions build upon the Company's multi-year strategic restructuring program that was first announced in January 2008. The Company also provided an update on its expectations for the second quarter period ending August 1, 2009.

Based on the expanded program, the Company now expects to generate ongoing annualized savings totaling approximately $125 million over the three-year program period ending in fiscal 2010, compared to the $85-$95 million in savings previously anticipated. Approximately $40 million of these savings were generated in fiscal 2008, an incremental $60 million are expected to be realized in the current fiscal year, and the remainder are expected in fiscal 2010.

Kay Krill, Ann Taylor President and Chief Executive Officer stated, "Since we began our strategic restructuring program in January 2008, our goal has been to build a more effective and efficient operational foundation that supports future growth and improved profitability over the long term. In light of the current environment, and encouraged by the process improvements and efficiencies we have achieved to-date, we have now identified additional opportunities to further reduce our SG&A cost structure, while improving our efficiency and profitability. These additional steps are expected to generate approximately $30 million in incremental annualized savings over our previous range. At the same time, we continue to be focused on delivering compelling product and exceptional value to our clients."

The actions announced today include, among other things, further right-sizing of the Company's corporate and divisional organization, changes to our field staffing, expansion of the Company's strategic non-merchandise procurement initiative, and further optimization of the Company's real estate portfolio.

Total pre-tax restructuring costs associated with the Company's multi-year program are now expected to be in the range of $130-$140 million, approximately $92 million of which have already been incurred. These costs include the $95-100 million previously anticipated under the program, plus incremental one-time costs of approximately $35-$40 million.

Of these incremental costs, the majority of which are expected to be incurred in the second quarter of 2009, approximately $20-25 million are expected to be non-cash costs related to the optimization of our real estate portfolio and approximately $15 million are expected to be cash costs associated primarily with the further streamlining of the organization.

Update on Second Quarter Expectations
With respect to the second quarter ended August 1, 2009, the Company indicated that it expects to report sales of approximately $470 million. Comparable store sales for the secondquarter 2009 will continue to reflect weakness, primarily at the Ann Taylor division.


Must ReadView All

UK retail firms urge Hammond to ease business rates burden

Textiles | On 20th Nov 2017

UK retail firms urge Hammond to ease business rates burden

Top British retail company CEOs have urged UK finance minister...

L-R: Surya Ajay Agarwal (Director - Donear), Vikram Mahaldar (MD - OCM) & Rahul Rajendra Agarwal (Director - Donear)

Textiles | On 20th Nov 2017

Promoters of Donear Group acquire OCM Woolen Mills

The promoters of Mumbai-based Donear Group have announced the...

Courtesy: Cornell

Textiles | On 20th Nov 2017

Cornell’s tech allows customisation of woven fabrics

Cornell Professor Steve Marschner and Rhode Island School of Design...

Interviews View All

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

November 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.5%
No
12.4%
Skip
19.1%

Total Votes: 89

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.8%
No
30.3%
Skip
7.9%

Total Votes: 89

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.5%
No
10.1%
Skip
3.4%

Total Votes: 89

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
80.9%
No
9.0%
Skip
10.1%

Total Votes: 89


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search