Ann Inc total net sales decline to 646.8 mn dollars in Q3
loading...
Commenting on the development, Kay Krill, President and Chief Executive Officer, said, “Our results for the third quarter were slightly ahead of the outlook we provided earlier this month. As previously noted, our performance reflected weak traffic across the industry, a highly promotional retail environment and the impact of labor uncertainty at the West Coast ports, which resulted in product shipment delays in the first half of the quarter and higher air freight expense later in the period. In addition, Ann Taylor experienced soft product performance in select categories, resulting in its first negative comparable sales performance in the last ten quarters.”
By brand, net sales across all channels of the Ann Taylor brand totaled 233 million dollars in the third quarter of 2014, compared with net sales of 249.2 million dollars in the third quarter of 2013. At the Loft brand, net sales across all channels, including Lou & Grey, were 413.8 million dollars in the third quarter of 2014, compared with net sales of 408.4 million dollars in the third quarter of 2013. Total Company comparable sales for the quarter decreased 4.3 percent, compared to an increase of 3.7 percent in the third quarter of 2013.
At Ann Taylor, total brand comparable sales decreased 6.6 percent, reflecting a decrease of 4.8 percent at Ann Taylor, which includes sales results at both Ann Taylor stores and anntaylor.com, and a decline of 10.4 percent in the Ann Taylor Factory channel. At Loft, total brand comparable sales decreased 2.9 percent, reflecting decreases of 3.3 percent at Loft, which includes sales results at Loft stores and Loft.com, and 1 percent in the Loft Outlet channel.
During the third quarter of fiscal 2014, the Company opened 14 stores, comprised of two Ann Taylor stores, two Ann Taylor Factory stores, four Loft stores, four Loft Outlet stores and two Lou & Grey stores. The Company closed four stores during the quarter, comprised of two Ann Taylor stores and two Loft stores. The total store count at the end of the fiscal third quarter was 1,050, comprised of 261 Ann Taylor stores, 115 Ann Taylor Factory stores, 546 Loft stores, 126 LOFT Outlet stores and two Lou & Grey stores.
Net sales for the first nine months of fiscal 2014 were 1.886 billion dollars, compared with net sales of 1.870 billion dollars in the first nine months of fiscal 2013. By brand, net sales across all channels of the Ann Taylor brand were 702.9 million dollars in the first nine months of 2014, compared with net sales of 713.6 million dollars in the first nine months of 2013. At the Loft brand, net sales across all channels, including Lou & Grey, were 1,183.2 million dollars in the first nine months of 2014, compared with net sales of 1,156.6 million dollars in the first nine months of 2013.
Total Company comparable sales for the first nine months of 2014 decreased 2.8 percent, compared with an increase of 2 percent in the comparable 2013 period. At Ann Taylor, total brand comparable sales decreased 2.7 percent, including declines of 1 percent at Ann Taylor and 6.3 percent in the Ann Taylor Factory channel. At Loft, total brand comparable sales decreased 2.9 percent, including decreases of 3.5 percent at Loft and 0.3 percent in the Loft Outlet channel.
The Company reiterated its previously provided outlook for the fiscal fourth quarter of 2014 with total Company net sales for the fiscal fourth quarter of 2014 expected to be 630 million dollars, reflecting a comparable sales decline in the low-single digits. Gross margin rate for the Company is expected to be 46.5 percent.