Exhibit 99.1
Ann Taylor
News Release
142 WEST 57TH STREET NEW YORK, NY 10019
ANN TAYLOR ANNOUNCES DECEMBER 2003 SALES RESULTS
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AND RAISES FOURTH QUARTER EARNINGS GUIDANCE
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New York, New York, January 8, 2004 - AnnTaylor Stores Corporation (NYSE: ANN)
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announced today that total net sales for the five-week period ended January 3,
2004 increased 40.1 percent to $215,922,000 over total net sales of $154,072,000
for the five-week period ended January 4, 2003. By division, net sales were
$118,058,000 for Ann Taylor and $82,758,000 for Ann Taylor Loft.
Comparable store sales for the period increased 26.2 percent compared to a
comparable store sales decrease of 14.6 percent for the same five-week period
last year. By division, comparable store sales for fiscal December 2003 were up
28.8 percent for Ann Taylor compared to a 19.1 percent decrease last year, and
up 25.4 percent for Ann Taylor Loft compared to a 4.1 percent decrease last
year.
Ann Taylor Chairman J. Patrick Spainhour said, "Our outstanding performance was
the result of a new holiday gift-giving strategy that began in the fourth
quarter of last year and focused on product, inventory investment, marketing and
in-store environment. Our client's acceptance of our holiday product, as well as
our overall offering, exceeded our expectations for December at both divisions.
"At Ann Taylor selling across our giftable areas, including cashmere sweaters,
fashion accessories and outerwear was strong. Additionally, we were especially
pleased with selling in our refined separates category."
Mr. Spainhour continued, "At Ann Taylor Loft we continue to be excited about the
positive performance across the business. December marked the fourth consecutive
month of double-digit comparable store sales for the division. Every category
exceeded our expectations. Our gift-giving focus on tops, outerwear and
accessories drove outstanding full price results."
Total inventory levels at the end of December, including inventory attributable
to Ann Taylor Global Sourcing, were down approximately 18 percent on a per
square foot basis compared to last year, consistent across both divisions.
For the second time this quarter, based on stronger than expected sales
performance, the Company is raising fourth quarter earnings expectations to the
range of $0.54 - $0.56 from the range of $0.43 - $0.45. The Company continues to
expect comparable store sales for January in the range of positive 3 - 5
percent, for both divisions.
The Company did not open or close any stores during fiscal December. The total
store count at fiscal month end remained at 652, comprised of 357 Ann Taylor
stores, 268 Ann Taylor Loft stores, and 27 Ann Taylor Factory stores. Total
store square footage at the end of fiscal December increased 11 percent over
last year.
For the fiscal year-to-date period ended January 3, 2004, the Company's net
sales totaled $1,494,592,000, up 15.1 percent from $1,299,063,000 for the same
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period in fiscal 2002. By division, net sales for the fiscal year-to-date period
were $817,463,000 for Ann Taylor, and $552,455,000 for Ann Taylor Loft.
Comparable store sales for the fiscal year-to-date period increased 5.3 percent
compared to a decrease of 3.4 percent for the same period last year. Comparable
sales by division for the fiscal year-to-date period were up 3.5 percent for Ann
Taylor compared to a 5.0 percent decrease last year, and up 9.0 percent for Ann
Taylor Loft compared to a 0.2 percent decrease last year.
Ann Taylor is one of the country's leading women's specialty retailers,
operating 652 stores in 43 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 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