AnnTaylor Stores Corporation announced that it expects to significantly expand its factory outlet footprint in 2011 through the opening of approximately 35 LOFT Outlet Stores and 5 Ann Taylor Factory Stores. To accelerate its expansion in this channel, the Company is leasing premium store locations at leading factory outlet centers across the United States formerly occupied by Liz Claiborne Inc.
Kay Krill, Ann Taylor's President and Chief Executive Officer, stated, "As we have previously noted, we had identified our highly productive factory outlet channel as an area for future growth, particularly for our LOFT brand. This extraordinary opportunity to open premium store locations significantly and efficiently accelerates our planned expansion and represents meaningful growth for our very successful LOFT Outlet business. Finally, we are delighted that this opportunity is expected to result in the creation of approximately 1,000 new jobs across the country."
The Company plans to open approximately 40 new factory outlet stores during the second quarter of fiscal 2011, which are expected to generate incremental fiscal 2011 revenue of approximately $75 million and to be accretive to its fiscal 2011 earnings per share. Capital expenditures associated with this strategic growth opportunity are expected to be approximately $25 million in fiscal 2011. There are no direct costs associated with the transfer of these locations from Liz Claiborne Inc. to Ann Taylor Stores Corporation.
As of July 31, 2010, the Company operated 110 stores in the factory outlet channel, of which 92 were Ann Taylor Factory Stores and 18 were LOFT Outlet Stores.
AnnTaylor Stores Corporation
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