EXHIBIT 99.1
AnnTaylor
News Release
142 West 57th St., New York, NY 10019
ANN TAYLOR ANNOUNCES MAY 2003 SALES RESULTS
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AND RAISES FULL YEAR 2003 EARNINGS GUIDANCE
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New York, New York, June 5, 2003 - AnnTaylor Stores Corporation (NYSE: ANN)
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announced today total net sales for the four-week period ended May 31, 2003
increased 19.1 percent to $137,371,000 over total net sales of $115,330,000
for the four-week period ended June 1, 2002. By division, net sales were
$77,804,000 for Ann Taylor and $47,520,000 for Ann Taylor Loft.
Comparable store sales for the period increased 9.4 percent compared to a
comparable store sales decrease of 5.2 percent for the same four-week period
last year. By division, comparable store sales for fiscal May 2003 were up
9.7 percent for Ann Taylor compared to a 4.4 percent decrease last year, and
up 10.6 percent for Ann Taylor Loft compared to an 8.5 percent decrease last
year.
Ann Taylor Chairman J. Patrick Spainhour said, "We are pleased with Ann
Taylor Loft's results and our client's continued favorable response to the
Loft product offering. Color, novelty and fashion drove our positive sales
performance. Our color story of turquoise, greens and aqua was well
received. Cropped pants in stripes, prints and solids, all sweaters and
woven tops, and fashion accessories were standouts for the month."
Mr. Spainhour continued, "At Ann Taylor, we drove positive comparable store
sales by being highly promotional. We were successful in selling a
significant amount of non-full price units, putting us in a good inventory
position as we enter into the summer clearance period."
The Company is raising earnings per share guidance for the second quarter to
the range of $0.39 - $0.41 from previous guidance in the range of $0.35 -
$0.37. The Company currently expects earning per share in the range of $0.98
- - $1.04 for the fall season and in the range of $1.76 - $1.84 for the 2003
fiscal year. Comparable store sales for the quarter are being revised upward
to the low single digit positive range, with comparable store sales at Ann
Taylor expected to be flat to low single digit positive and comparable store
sales at Ann Taylor Loft expected to be up low single digit to mid- single
digit positive.
Total inventory levels at the end of May, including inventory attributable to
Ann Taylor Global Sourcing, were down 1 percent on a per square foot basis.
By division, inventory levels on a per square foot basis were down
approximately 2 percent for Ann Taylor and flat for Ann Taylor Loft.
Sales were strong throughout the country, except for the northeast region
primarily due to unseasonable weather.
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AnnTaylor
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During the month, the Company closed one Ann Taylor store, bringing the total
store count at month end to 601, comprised of 350 Ann Taylor stores, 224 Ann
Taylor Loft stores, and 27 Ann Taylor Factory stores. Total square footage
at the end of fiscal May increased 7.7 percent over last year.
For the fiscal year-to-date period ended May 31, 2003, the Company's net
sales totaled $489,388,000, up 6.2 percent from $460,722,000 for the same
period in 2002. By division, net sales for the fiscal year-to-date period
were $279,130,000 for Ann Taylor and $167,443,000 for Ann Taylor Loft.
Comparable stores sales for the fiscal year-to-date period decreased 2.4
percent over the same period last year. Comparable store sales by division
for the fiscal year-to-date period were down 3.7 percent for Ann Taylor and
up 0.7 percent for Ann Taylor Loft.
Ann Taylor is one of the country's leading women's specialty retailers,
operating 601 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 Corporation's monthly sales recording. No access code is required.
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; the
potential impact of health concerns relating to severe acute respiratory
syndrome, particularly on manufacturing operations of the Company's vendors
in Asia and elsewhere; 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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