EXHIBIT 99.1
ANNTAYLOR
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NEWS RELEASE
142 WEST 57TH ST. NEW YORK, NY 10019
ANN TAYLOR ANNOUNCES APRIL 2003 SALES RESULTS
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New York, New York, May 8, 2003 - AnnTaylor Stores Corporation (NYSE: ANN)
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announced today that total net sales for the four week period ended May 3,
2003 increased 6.1 percent to $132,494,000 over total net sales of
$124,865,000 for the four week period ended May 4, 2002.
Comparable store sales for the period decreased 3.2 percent compared to a
comparable store sales decrease of 2.7 percent for the same four-week period
last year. By division, comparable store sales for fiscal April 2003 were
down 6.8 percent for Ann Taylor compared to a 4.4 percent decrease last year,
and up 5.7 percent for Ann Taylor Loft compared to a 0.5 percent increase
last year.
Comparable store sales for the combined March and April period decreased 5.8
percent compared to a comparable store sales increase of 0.3 percent for the
same nine-week period last year. By division, comparable store sales for
combined fiscal March and April were down 8.1 percent for Ann Taylor compared
to a decrease of 2.5 percent last year, and down 0.7 percent for Ann Taylor
Loft compared to an 8.7 percent increase last year.
For the first quarter and fiscal year-to-date period ending May 3, 2003,
total net sales were $352,017,000, up 1.9 percent from $345,392,000 for the
same period last year. Comparable store sales for the first quarter of
fiscal 2003 were down 6.5 percent, compared to an increase of 0.1 percent for
the first quarter of last year. By division, comparable store sales for the
first quarter were down 8.1 percent for Ann Taylor compared to a 2.1 percent
decrease last year, and down 2.8 percent for Ann Taylor Loft compared to a
5.9 percent increase last year.
Ann Taylor Chairman J. Patrick Spainhour said, "We were extremely pleased
with our client's response to Ann Taylor Loft's product offering during
April. The positive sales trend built throughout the last six weeks of the
quarter and we are excited about Loft's momentum going into May. The
combination of great fashion and color starting mid-March into April set us
apart. Stripe pants, all woven shirts, especially voile shirts, and all
categories of linen were standouts.
"At Ann Taylor our assortment lacked color, fashion and sophistication, which
led to disappointing April and first quarter sales results. The strength of
our margin, resulting from the continuation of tight inventory management and
strong IMU, helped offset our fashion misses."
Mr. Spainhour continued, "At Ann Taylor we expect to continue to experience
fashion misses in the second quarter, however, fashion elements improve for
the fall season. We are currently working on fall marketing to support a
more updated and sophisticated style than in seasons past. We look forward
to improved fashion, coupled with more powerful marketing and stronger visual
presentations to drive traffic and sales volume for the fall season."
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For the first quarter the Company expects to report earnings per share on a
diluted basis of $0.39, which is in the low range of Company guidance of
$0.39 - $0.41. The Company plans to provide second quarter and full year
earnings guidance in the first quarter earnings release and live conference
call scheduled for May 14th, after market close.
Inventory levels at the end of April were up approximately 5 percent on a per
square foot basis, compared to the prior year. This comparison includes
inventory attributable to Ann Taylor Global Sourcing.
From a regional perspective, northeast performance was the weakest primarily
due to cooler temperatures compared to the same period last year.
During the month, the Company opened one new Ann Taylor store and six new Ann
Taylor Loft stores. This brings the total store count at month end to 602,
comprised of 351 Ann Taylor stores, 224 Ann Taylor Loft stores, and 27 Ann
Taylor Factory stores. Total square footage at the end of fiscal April
increased 8.7 percent over last year. During the second quarter of fiscal
2003, the Company plans to open two new Ann Taylor Loft stores, one new Ann
Taylor Factory store, and close one Ann Taylor store.
Ann Taylor is one of the country's leading women's specialty retailers,
operating 602 stores in 42 states, the District of Columbia and Puerto Rico,
and also an Online Store at www.anntaylor.com.
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For more information, please call (866) 214-2661 to listen to Ann Taylor
Stores Corporations monthly sales recording. No access code is required.
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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 client 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; 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; work stoppages, slowdowns
or strikes; and other factors set forth 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 Riely
Director of Investor Relations
(212) 541-3484
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