Ann Q3 net sales up 7 percent

REPORT_ Ann net sales for the third quarter of fiscal 2013 showed an increase of 7

percent compared to the third quarter of fiscal 2012. Total company comparable sales for the quarter increased 3.7 percent, on top of an increase of 5.5 percent in the third quarter of 2012. At Ann Taylor, total brand comparable sales increased 0.6 percent. At Loft, total brand comparable sales were up 5.6 percent.

Gross margin, as a percentage of net sales, was 55.7 percent compared with the 57.9 percent gross margin rate achieved in the third quarter of 2012. The gross margin performance in the third quarter of 2013 primarily reflected the impact of a highly competitive promotional environment. Gross margin, as a percentage of net sales, was 55.4 percent in the first nine months of 2013, compared with 56.8 percent in the first nine months of 2012. For the fiscal fourth quarter of 2013, the company expects a comparable sales increase in the mid-single digits. Gross margin rate performance is expected to be 49.5 percent.

Ann is based in New York. Ann is the parent company of Ann Taylor and Loft, two women’s specialty retail fashion brands in North America. Kay Krill, President and Chief Executive Officer, commented, “Ann delivered outstanding performance this quarter. Despite a challenging and highly promotional retail environment, we achieved a double-digit increase in earnings per share. Our bottom line growth reflected higher sales and a solid gross margin rate.”