Ann Inc expects 2.3 percent decline in Q2 sales

REPORT_ Ann Inc updated its outlook for the fiscal second quarter of 2014,

reflecting lower-than-anticipated comparable sales and gross margin rate performance. Based on preliminary results, total Company net sales for the fiscal second quarter of 2014 are now expected to be 648 million dollars, reflecting a comparable sales decline of 2.3 percent.

At the Ann Taylor brand, total comparable sales increased 0.7 percent, reflecting an increase of 2 percent partially offset by a decline of 1.9 percent in the Ann Taylor Factory channel. At the Loft brand, total comparable sales declined 4.1 percent, reflecting a decrease of 5.2 percent and an increase of 0.3 percent in the Loft Outlet channel.

Commenting on the updated outlook, Kay Krill, President and Chief Executive Officer, said, “Despite positive performance through mid-June, the remainder of the second quarter proved more challenging, with soft traffic across the industry and a highly promotional environment. While we delivered a positive comp for the quarter at Ann Taylor, we were disappointed in our performance at Loft, which experienced continued softness in basic knit tops that represent a meaningful component its summer assortment.”