EXHIBIT 99.1
ANNTAYLOR
NEWSRELEASE
142 WEST 57TH STREET NEW YORK, N.Y. 10019
ANN TAYLOR ANNOUNCES JULY 2003 SALES RESULTS
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New York, New York, August 7, 2003 - AnnTaylor Stores Corporation (NYSE: ANN)
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announced today total net sales for the four week period ended August 2, 2003
increased 15.7 percent to $116,451,000 over total net sales of $100,623,000
for the four week period ended August 3, 2002. By division, net sales were
$65,020,000 for Ann Taylor and $41,687,000 for Ann Taylor Loft.
Comparable store sales for the period increased 7.6 percent compared to a
comparable store sales increase of 7.4 percent for the same four week period
last year. By division, comparable store sales for fiscal July 2003 were up
8.6 percent for Ann Taylor compared to a 9.0 percent increase last year, and
up 5.0 percent for Ann Taylor Loft compared to a 4.8 percent increase last
year.
For the second quarter of fiscal 2003, total net sales were $390,207,000, up
13.7 percent from $343,143,000 for the same period last year. By division,
net sales for the second quarter were $216,038,000 for Ann Taylor and
$140,008,000 for Ann Taylor Loft. Comparable store sales for the second
quarter of fiscal 2003 were up 5.3 percent, compared to a decrease of 0.2
percent for the second quarter of last year. By division, comparable store
sales for the second quarter were up 4.9 percent for Ann Taylor compared to a
0.3 percent increase last year, and up 5.7 percent for Ann Taylor Loft
compared to a 1.5 percent decrease last year.
Ann Taylor Chairman, J. Patrick Spainhour, said, "We were pleased with the
success of our end of season clearance at both our Ann Taylor and Ann Taylor
Loft divisions. The strong performance of our summer clearance allowed us to
enter August in a clean inventory position."
Mr. Spainhour continued, "Due to higher than expected sales and related
margin, we are raising our second quarter earnings per share guidance to
approximately $0.44 - $0.45 from the range of $0.39 - $0.41."
Total inventory levels at the end of July, including inventory attributable
to Ann Taylor Global Sourcing, were down approximately 8 percent on a per
square foot basis compared to last year, consistent across both divisions.
This decrease is primarily due to lower in-transit inventory levels compared
to last year.
The company continues to expect earnings per share in the range of $0.98 -
$1.04 for the fall season and will provide third and fourth quarter guidance
at the time of its second quarter earnings announcement scheduled for August
13th.
Geographically, sales results were weakest in the Northeast region of the
country. These results were consistent across both divisions.
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ANNTAYLOR
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The Company did not open or close any stores during July. The total store
count at fiscal month end remained unchanged at 603, comprised of 350 Ann
Taylor stores, 226 Ann Taylor Loft stores, and 27 Ann Taylor Factory stores.
Total square footage at the end of fiscal July increased 8.1 percent over
last year.
For the fiscal year-to-date period ended August 2, 2003, the Company's net
sales totaled $742,224,000, up 7.8 percent from $688,535,000 for the same
period in fiscal 2002. By division, net sales for the fiscal year-to-date
period were $417,364,000 for Ann Taylor and $259,931,000 for Ann Taylor
Loft. Comparable stores sales for the fiscal year-to-date period decreased
0.5 percent over the same period last year. Comparable store sales by
division for the fiscal year-to-date period were down 1.8 percent for Ann
Taylor and up 1.7 percent for Ann Taylor Loft.
Ann Taylor is one of the country's leading women's specialty retailers,
operating 603 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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