Total inventory levels at the end of the first quarter were up approximately 8 percent on a per square foot basis compared to the same period last year. By division, inventory levels on a per square foot basis were down approximately 3 percent at Ann Taylor and up approximately 16 percent for Ann Taylor LOFT. At both divisions, a decrease in in-transit inventory levels was offset by higher in-store inventory levels.
Gross margin, as a percentage of net sales, decreased to 51.0 percent in the first quarter of fiscal 2005, compared to 58.4 percent in the first quarter of fiscal 2004. The decrease in gross margin as a percentage of net sales is primarily due to lower full-price sales and lower margins achieved on non full-price sales, largely due to increased promotional activity at both divisions.
Selling, general and administrative expenses during the first quarter of fiscal 2005 were $215,733,000, or 45.2 percent of net sales, compared to $199,325,000, or 46.0 percent of net sales, for the same period last year. The decrease in selling, general and administrative expenses as a percentage of net sales primarily resulted from a decrease in the provision for management performance bonus and lower marketing costs, partially offset by an overall deleveraging of expenses due to the decrease in comparable store sales.
Operating profit was 5.8 percent of net sales in the first quarter of fiscal 2005 compared to 12.4 percent of net sales in the et by an overall deleveraging of expenses due to the decrease in comparable store sales.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
