AnnTaylor Stores Corporation announced that net sales for the five-week period ended December 30, 2006 increased 2.4% to $274.2 million, compared with net sales of $267.7 million for the five-week period ended December 31, 2005.
By division, net sales were $109.1 million for Ann Taylor compared to $114.5 million last year, and $130.9 million for Ann Taylor LOFT compared to $128.8 million last year.
Comparable store sales for December 2006 declined 5.3% compared to a comparable store sales increase of 1.5% for the same five-week period last year. By division, comparable store sales for fiscal December 2006 were down 4.2% for Ann Taylor compared to a 2.3% increase last year, and down 8.1% for Ann Taylor LOFT compared to a 1.6% increase last year.
Commenting on the December sales results, Ann Taylor President & Chief Executive Officer Kay Krill stated, "December was clearly our most challenging month of the year. Our results for both brands were soft in the cold weather categories of sweaters, outerwear and cold weather accessories, compared to strong demand for these products in 2005.”
“Our gifting business, which is largely focused on sweaters, outerwear and accessories, was slower than we have historically experienced and was below expectations for the holiday period. For the month, the Ann Taylor division had strong results in wear to work merchandise, especially suits, as well as strength in special occasion separates."
"LOFT's results continued to be especially disappointing in sweaters, outerwear and accessories. We continue to clear through existing LOFT merchandise and are committed to entering February 2007 in a healthy inventory position."
The Company indicated that, as a result of the December softness, it now expects full year EPS for fiscal 2006 to be somewhat below its previous guidance range of $2.07 to $2.12. Nevertheless, given the strength of the first three quarters, the Company continues to expect 2006 to be a record year.
AnnTaylor Stores Corporation
marketing@alchempro.com
