Ann Q2 profit down; cuts full-year outlook

New York -- Ann Inc. on Friday reported earnings of $32.7 million in its fiscal second quarter, down from $35.6 million in the second quarter of 2013. Its results were in line Wall Street expectations. Looking ahead, the company forecast revenue for the third quarter below Street estimates and also lowered its revenue outlook for fiscal 2014.



Total net sales for quarter were $648.7 million, compared with net sales of $638.2 million in the year ago period.



Total company same-store sales decreased 2.3%. At Ann Taylor, same-store sales increased 0.7%, reflecting an increase of 2.0% at Ann Taylor, partially offset by a decline of 1.9% in the Ann Taylor factory channel.



Same-store sales at Loft fell 4.1%, with a decrease of 5.2% at full-priced Loft stores and an increase of 0.3% in the Loft outlet channel.



“As previously reported, while the quarter had started on a positive note with solid momentum through mid-June, the second half of the period proved challenging, as softer traffic levels and a highly promotional environment pressured sales and margin,” said Kay Krill, president and CEO. “In addition, Loft experienced continued softness in basic knit tops, which represented a significant component of its summer assortment.”