EXHIBIT 99.1
ANNTAYLOR
NEWS RELEASE
142 West 57th Street, New York, NY 10019
ANN TAYLOR ANNOUNCES OCTOBER 2003 SALES RESULTS
-----------------------------------------------
AND RAISES THIRD QUARTER EARNINGS GUIDANCE
------------------------------------------
New York, New York, November 6, 2003 - AnnTaylor Stores Corporation (NYSE: ANN)
- ------------------------------------
announced today total net sales for the four week period ended November 1, 2003
increased 14.9 percent to $131,727,000 over total net sales of $114,658,000 for
the four week period ended November 2, 2002. By division, net sales were
$70,811,000 for Ann Taylor and $51,140,000 for Ann Taylor Loft.
Comparable store sales for the period increased 3.9 percent compared to a
comparable store sales increase of 0.2 percent for the same four-week period
last year. By division, comparable store sales for fiscal October 2003 were down
0.2 percent for Ann Taylor compared to a 2.2 percent decrease last year, and up
14.1 percent for Ann Taylor Loft compared to a 4.5 percent increase last year.
For the third quarter of fiscal 2003, total net sales were $396,807,000, up 16.6
percent from $340,218,000 for the same period last year. By division, net sales
for the third quarter were $207,077,000 for Ann Taylor and $157,023,000 for Ann
Taylor Loft. Comparable store sales for the third quarter of fiscal 2003 were up
6.2 percent, compared to a decrease of 1.1 percent for the third quarter of last
year. By division, comparable store sales for the third quarter were up 1.9
percent for Ann Taylor compared to a 2.9 percent decrease last year, and up 13.4
percent for Ann Taylor Loft compared to a 1.7 percent increase last year.
Ann Taylor Chairman J. Patrick Spainhour said, "At Ann Taylor Loft, we continue
to be excited with the outstanding sales performance seen across all product
categories. For October, tops, suits, separates, shoes and fashion accessories
all registered double-digit comparable store sales increases. We expect our
positive sales momentum to continue throughout the Holiday season.
"Although Ann Taylor sales were somewhat less than expected, comparable store
sales momentum built at the end of the month as more color and novelty arrived
for the Holidays. We continue to expect to achieve positive fourth quarter sales
results for the division."
Mr. Spainhour continued, "Due to the strength of our October gross margin, we
are raising third quarter earnings guidance to the range of $0.62 - $0.63 from
the range of $0.57 - $0.61 per share. We plan to release third quarter earnings
results on November 12th, after the market close. For the fourth quarter we
continue to expect earnings per share in the range of $0.41 - $0.43 and
comparable store sales of 5 - 7 percent for Ann Taylor and Ann Taylor Loft."
Total inventory levels at the end of October, including inventory attributable
to Ann Taylor Global Sourcing, were flat on a per square foot basis compared to
last year. By division, inventory levels on a per square foot basis were up
approximately 7 percent at Ann Taylor and down approximately 4 percent at Ann
Taylor Loft. Inventory levels at Ann Taylor were up due to higher in-transit
inventory, while at Ann Taylor Loft, better product sell-through was responsible
for the lower inventory levels.
================================================================================
2
During October, the Company opened 11 new Ann Taylor Loft stores. The total
store count at fiscal month end was 639, comprised of 355 Ann Taylor stores, 257
Ann Taylor Loft stores and 27 Ann Taylor Factory stores. Total store square
footage at the end of fiscal October increased 9.7 percent over the year before.
For the fiscal year-to-date period ended November 1, 2003, the Company's net
sales totaled $1,139,031,000, up 10.7 percent from $1,028,753,000 for the same
period in fiscal 2002. By division, net sales for the fiscal year-to-date period
were $624,441,000 for Ann Taylor and $416,954,000 for Ann Taylor Loft.
Comparable store sales for the fiscal year-to-date period increased 1.7 percent
compared to a comparable store sales decrease of 0.4 percent for the same period
last year. Comparable sales by division for the fiscal year-to-date period were
down 0.6 percent for Ann Taylor compared to a 1.6 percent decrease last year,
and up 5.7 percent for Ann Taylor Loft compared to a 1.7 percent increase last
year.
Ann Taylor is one of the country's leading women's specialty retailers,
operating 639 stores in 43 states, the District of Columbia and Puerto Rico, and
also an Online Store at www.anntaylor.com.
-----------------
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 infectious diseases,
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.
o o o
Contact:
Barry Erdos
Chief Operating Officer
(212) 541-3318
Doreen Riely
Director of Investor Relations
(212) 541-3484