EXHIBIT 99.1
ANNTAYLOR
---------
NEWS RELEASE
------------
142 WEST 57TH STREET NEW YORK, NY 10019
FOR IMMEDIATE RELEASE
- ---------------------
ANN TAYLOR ANNOUNCES MARCH SALES RESULTS
----------------------------------------
AND DECLARES THREE FOR TWO STOCK SPLIT
--------------------------------------
New York, New York, April 11, 2002 - AnnTaylor Stores Corporation
--------------------------------------
(NYSE: ANN) announced today that total net sales for the five week period
ended April 6, 2002 increased 16.3 percent to $138,531,000 over total net
sales of $119,113,000 for the five week period ended April 7, 2001.
Comparable store sales for the period increased 3.5 percent compared
to a comparable store sales decrease of 6.0 percent for the same five-week
period last year. By division, comparable store sales for fiscal March 2002
were down 0.6 percent for the Ann Taylor division compared to a 5.9 percent
decrease last year and up 17.1 percent for the Ann Taylor Loft division
compared to a 6.0 percent decrease last year.
Ann Taylor Chairman J. Patrick Spainhour said, "We continue to be
pleased with our full price selling and gross margin rates at both of our
concepts. Product acceptance at Ann Taylor stores is evident by strong full
price sales results, although sales gains in our suits, dresses and casual
categories were offset by a softness in tops. We are working hard to drive
improvements in the tops area by focusing on silhouettes in yarns, gauges and
colors that wardrobe better to our separates. At Ann Taylor Loft we are
hitting on all cylinders. In March, every region and product category
enjoyed positive comparable sales results. Casual and relaxed separates,
sweaters and woven tops, footwear and accessory performance especially stood
out."
Mr. Spainhour continued, "While we expect April comparable sales
results to be down slightly due to an early Easter and our decision not to do
a company-wide POS sale at the end of April due to reduced inventory levels,
we expect improved gross margin from full price selling for the remainder of
the first quarter. Thus, we are raising our first quarter earnings per share
guidance on a diluted basis to the range of $0.60 - $0.62. We expect total
Company comparable store sales for April to be mid-single digit negative,
with Ann Taylor comparable store sales projected to be high single digit
negative and Ann Taylor Loft comparable store sales projected to be flat. In
the second quarter, we expect total Company comparable store sales results to
be flat, with the Ann Taylor Loft division outperforming the Ann Taylor
division on a comparable sales basis. We expect a continuation of our gross
margin strength during the quarter. As a result of this margin momentum we
are raising second quarter earnings guidance to the range of $0.34 - $0.36.
Third and fourth quarter earnings guidance remains unchanged in the range of,
$0.63 - $0.66 and $0.44 - $0.48, respectively. Full year earnings guidance
is now $2.01 - $2.12."
================================================================================
2
ANNTAYLOR
Page 2 of 3
Inventory levels at the end of March were down approximately 6 percent
on a per square foot basis, compared to the prior year. This comparison
excludes inventories attributable to the Company's Sourcing division, which
are principally finished goods in transit from factories.
From a national perspective, downtown and tourist locations continue to
lag in comparison to the rest of the Company. For fiscal March, comparable
store sales in downtown and tourist locations were down 3 percent.
Geographically, the west lagged in comparison to the rest of the country.
This performance was consistent across both the Ann Taylor and the Ann Taylor
Loft divisions.
In March, the Company opened 1 new Ann Taylor store and 1 new Ann
Taylor Loft store, and plans to open an additional 7 new Ann Taylor Loft
stores in the remainder of the first quarter of fiscal 2002. During the
second quarter of fiscal 2002, the Company plans to open 1 new Ann Taylor
store and 3 new Ann Taylor Loft stores. The total store count at March
month-end was 343 Ann Taylor stores, 173 Ann Taylor Loft stores, 8 Ann Taylor
Loft Outlet stores and 20 Ann Taylor Factory stores.
The Company also announced today that its Board of Directors approved a
3-for-2 stock split of the Company's Common Stock in the form of a stock
dividend. One additional share of Common Stock for every two shares owned
will be distributed on or about May 20, 2002 to stockholders of record at the
close of business on May 2, 2002. The stock split will result in a 50
percent increase in the number of shares of Common Stock outstanding as of
the record date, with cash being paid in lieu of fractional shares.
Ann Taylor Chairman J. Patrick Spainhour said, "The stock dividend was
appropriate in consideration of the Company's capital position and the
current market price of its common stock."
Ann Taylor is one of the country's leading women's specialty retailers,
operating 544 stores in 42 states, the District of Columbia and Puerto Rico,
and also an Online Store at www.anntaylor.com as of April 6, 2002.
-----------------
# # # # #
FORWARD-LOOKING STATEMENTS
Certain statements in this press release are forward-looking statements made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. The forward-looking statements may use the words
"expect", "anticipate", "plan", "intend", "project", "believe" and similar
expressions. These forward-looking statements reflect the Company's current
expectations concerning future events and actual results may differ
materially from current expectations or historical results. Any such
forward-looking statements are subject to various risks and uncertainties,
including failure by the Company to predict accurately customer fashion
preferences; decline in the demand for merchandise offered by the Company;
competitive influences; changes in levels of store traffic or consumer
spending habits; effectiveness of the Company's brand awareness and marketing
programs; lack of sufficient customer acceptance of the Ann Taylor Loft
2
================================================================================
3
ANNTAYLOR
Page 3 of 3
concept in the upper-moderate-priced women's apparel market; general economic
conditions or a downturn in the retail industry; the inability of the Company
to locate new store sites or negotiate favorable lease terms for additional
stores or for the expansion of existing stores; lack of sufficient consumer
interest in the Company's Online Store; a significant change in the
regulatory environment applicable to the Company's business; an increase in
the rate of import duties or export quotas with respect to the Company's
merchandise; financial or political instability in any of the countries in
which the Company's goods are manufactured; acts of war or terrorism in the
United States or worldwide; and other factors set fourth in the Company's
filings with the SEC. The Company does not assume any obligation to update
or revise any forward-looking statements at any time for any reason.
# # #
Contact:
Barry Erdos
Chief Operating Officer
(212) 541-3318
Doreen D. Riely
Director, Investor Relations
(212) 541-3484
3