New York -- Ann Inc., which runs the Ann Taylor and Loft, reported that its fiscal first-quarter net income dropped 27%, as unseasonably cold weather held back sales of spring and summer clothing and led to discounts. The retailer also cut its revenue outlook for the year.
Kay Krill, president and CEO commented, "As previously noted, our first quarter performance reflected the impact of unseasonably cold weather, which negatively affected sales of warm weather product, primarily at Loft. As a result, we were more promotional than planned to clear through inventory in advance of second quarter deliveries.”
For the quarter ended May 4, Ann Inc. earned $20.9 million, down from $28.7 million in the year-ago period.
Revenue rose 3%, to $574.5 million. Same-store sales fell 0.5%. The metric was up 1.9% at Ann Taylor and down 1.9% at Loft.