Softening sales pushed AnnTaylor Stores (ANN) to a loss in the third-quarter as consumers continue to cut back amid the weak economic environment.
The women’s clothing retailer reported a loss of $13.4 million, or 24 cents a share, compared with a profit of $40.8 million, or 66 cents a share, in the same quarter last year. Excluding restructuring charges, the company would have come in even at 67 cents a share.
The company’s revenue for the quarter came in at $527.2 million -- a 12% drop from the $600.9 million it earned a year ago.
Analysts polled by Thomson Reuters were expecting a profit of 1 cent per share on revenue of $531.9 million.
Same-store sales for the quarter fell 19.4%, with Ann Taylor stores down 24.8% and Ann Taylor LOFT stores down 15.4%
AnnTaylor Chief Executive Kay Krill said the company’s soft performance was due to a “dramatic deterioration” in the overall economy, especially in the last part of the quarter. As a result, the company plans to step up its cost reduction initiatives and expand the restructuring program it announced earlier this month to maximize on savings.
“We are focusing our resources on managing through this difficult period, while also continuing to position our business for growth when the economy improves,” Krill said.
While no specifics were announced, the company said it cut capital spending for the next year and expects its fourth quarter to be “highly promotional” as consumer spending continues to decline.
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