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Restructuring costs reduce AnnTaylor Q4 results
14 Mar '08
3 min read
AnnTaylor Stores Corporation reported its results for the fiscal fourth quarter and full year of 2007 ended February 2, 2008. For the full year of fiscal 2007, diluted earnings per share, on a GAAP basis, were $1.53, including $0.31 in one-time restructuring costs. Excluding one-time restructuring costs, diluted earnings per share for the full year were $1.84, compared with $1.98 in fiscal 2006.
On January 30, 2008, the Company announced a multi-year, strategic restructuring program, expected to deliver $50 million in ongoing annualized pre-tax savings by fiscal 2010.
Key elements of the program include the optimization of the Company's store portfolio, including the closure of 117 underperforming stores over the 2008-2010 period; an organizational streamlining, primarily involving the downsizing of the Company's headquarters staff by approximately 13%, which was completed in January 2008; and a broad- based productivity initiative, including the strategic procurement of non-merchandise goods and services.
Total pre-tax costs associated with the implementation of the program are expected to be approximately $40-45 million over the three-year period. The Company expects this program to dramatically improve its efficiency, effectiveness and profitability over the next three years and beyond.
Commenting on the results of the year, Ann Taylor President & Chief Executive Officer Kay Krill stated, "Following a record year in fiscal 2006, this past year proved to be more difficult, given the soft macroeconomic environment and resultant impact on the retail sector and our Company. Importantly, we managed our inventory levels and in-store metrics very well all year, and we are entering fiscal 2008 in excellent shape, in this regard.
On January 30, 2008, the Company announced a multi-year, strategic restructuring program, expected to deliver $50 million in ongoing annualized pre-tax savings by fiscal 2010.
Key elements of the program include the optimization of the Company's store portfolio, including the closure of 117 underperforming stores over the 2008-2010 period; an organizational streamlining, primarily involving the downsizing of the Company's headquarters staff by approximately 13%, which was completed in January 2008; and a broad- based productivity initiative, including the strategic procurement of non-merchandise goods and services.
Total pre-tax costs associated with the implementation of the program are expected to be approximately $40-45 million over the three-year period. The Company expects this program to dramatically improve its efficiency, effectiveness and profitability over the next three years and beyond.
Commenting on the results of the year, Ann Taylor President & Chief Executive Officer Kay Krill stated, "Following a record year in fiscal 2006, this past year proved to be more difficult, given the soft macroeconomic environment and resultant impact on the retail sector and our Company. Importantly, we managed our inventory levels and in-store metrics very well all year, and we are entering fiscal 2008 in excellent shape, in this regard.
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