New York City -- Ann Inc. reported Friday that net income for its fiscal fourth quarter dropped to $2.2 million from $8 million in the year-ago period, hurt by heavy promotions at namesake stores.
Sales increased to $566.7 million, from $515.3 million, and same-store sales for fourth quarter rose 5.3%.
By brand, same-store sales plummeted 10.9% at namesake stores, but rose 8.1% at Loft stores. Strength in the online channel boosted overall same-store results.
“Our overall bottom-line results were impacted by significantly higher-than-anticipated promotional activity in the Ann Taylor stores channel,” said Kay Krill, president and CEO.
For the full year, sales edged up to $2.2 billion from $2 billion in 2010, and same-store sales increased 6.8%. Profit rose to $86.6 million, compared with $73.4 million last year.
The company said it is on track to open 65 new stores in fiscal 2012, which will be partially offset by downsizes at Ann Taylor stores and about 30 store closures.