ANN TAYLOR CORPORATION TARGETS TO DELIVER 18%-20% COMPOUNDED EPS GROWTH
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THROUGH COMPANY'S EFFORTS TO ACHIEVE CONSISTENCY IN SALES AND OPERATING
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MARGIN GAINS
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-- COMPANY REAFFIRMS PREVIOUSLY PROVIDED GUIDANCE FOR 2002 --
FOR IMMEDIATE RELEASE
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NEW YORK, NEW YORK, APRIL 18, 2002 - Ann Taylor Stores Corporation (NYSE: ANN)
is targeting to achieve earnings per share growth in the range of 18% to 20%
over 2003- 2005, the Company's Chairman and Chief Executive Officer, J. Patrick
Spainhour, today told analysts at a webcast investor conference held today at
the New York Stock Exchange.
Mr. Spainhour said that these earnings objectives can be met if the Company more
consistently delivers on the expectations of the Ann Taylor client. The target
is to drive annual top line sales growth in the range of 12%, based on
comparable store growth in the 3% range at both the Ann Taylor and Ann Taylor
Loft. The Company is also targeting to reach double-digit operating margins.
"The Ann Taylor brand appeals to broad and highly appealing demographics -
possibly among the best in the industry. By taking steps to deliver more
consistently on our clients' expectation of updated classic styling, we believe
we can meet our targeted growth rates. With the right strategy and right team
now in place, we are well-positioned to produce over time the value our
shareholders know Ann Taylor is capable of achieving," Spainhour said.
At the meeting, Barry Erdos, Ann Taylor's Chief Operating Officer, also said
that the Company was comfortable with its previous earnings per share guidance
for 2002 of $2.01- $2.12 on a diluted basis. Quarterly estimates for the year
are projected to be $0.60- $0.62, $0.34- $0.36, $0.63- $0.66 and $0.44- $0.48
for the first through fourth quarters, respectively.
"We have worked hard to set our house in order and the financial benefits are
starting to show," said Mr. Erdos. "While we are taking a conservative view on
comps - for the spring 2002 season we expect comparable store sales flat to last
year and for fall 2002 we are projecting comparable store sales in the low
single digit positive range - we expect gross margin for the year to improve
approximately 100 basis points over the 50.2% achieved in fiscal 2001.
Achievement of this rate would represent the highest merchandise gross margin in
the Company's history."
Ann Taylor held a webcast of its Annual Analyst Meeting from the boardroom of
the New York Stock Exchange. Kim Roy, President of the Ann Taylor Division, Kay
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Krill, President of the Ann Taylor Loft Division, and Catherine Sadler, Chief
Marketing Officer participated with Messrs. Spainhour and Erdos in the
presentation and a question and answer session.
The meeting was broadcast live over the Internet. For the webcast, log on to the
Ann Taylor Investor Relations web site at http://investor.anntaylor.com and
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click on the event link. The webcast will be available for replay through
Thursday, April 30, 2002.
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.
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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
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.
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Contact:
Barry Erdos
Chief Operating Officer
(212) 541-3318
Doreen D. Riely
Director, Investor Relations
(212) 541-3484