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

Textiles | On 20th Feb 2017

UK textile & apparel exports up 7.05% in 2016: UKFT

The exports of apparel and textiles from the UK have increased by...

Textiles | On 20th Feb 2017

Himatsingka Seide incorporates subsidiary in Europe

Himatsingka Seide Ltd, one of the largest producers of home textiles...

Textiles | On 20th Feb 2017

IVL receives distinction for sustainability performance

Indorama Ventures Public Company Limited (IVL), one of the world’s...

Interviews View All

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Jurgen Gauger
Spreadshirt

‘Buying crowdsourced or creative designs are much more appealing to the...

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Karan Arora
Karan Arora

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

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
February 2017

February 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search