ANN Reports Double Digit Comparable Sales Increase In Q1

Ann Taylor Stores Corp (NYSE: ANN) announced its fiscal Q1 ended May 1, 2010 results today. The earnings per diluted share stood at $0.38 on both a GAAP and an operating basis, versus $0.04 loss per diluted share on a GAAP basis and a $0.03 loss per diluted share on an operating basis, excluding an after-tax restructuring charge of $0.01 per share, a year ago.

ANN’s total net sales upped to $476.2 million from $426.7 million last year. By brand, the company achieved net sales of $198.4 million across all channels of the Ann Taylor brand, up from $178.3 million in the same quarter a year ago. Net sales across all channels at the LOFT brand increased to $277.8 million from $248.5 million in the year-ago period.

President and CEO, Kay Krill, said, "Fiscal 2010 is off to an excellent start, with both Ann Taylor and LOFT achieving outstanding results for the first quarter. A substantial uptick in sales, including double-digit comparable sales increases at both brands, and a strong gross margin rate drove the dramatic improvement over year-ago results. Clients responded positively to our Spring collections at both brands, and we were pleased with the increased traffic levels and improved in-store metrics during the quarter.”

ANN gave its net sales outlook for fiscal 2010 Q2 at $500 million, incorporating double-digit comparable sales increase. The company’s gross margin rate is expected to increase by 250 basis points, reflecting 52.4% growth.

After closing at $20.23, down 1.08% yesterday, ANN climbed 0.35% to $20.30 during the after-hours.

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