Ann Taylor chief says Q1 profit to beat estimates

New York City Ann Taylor Stores Corp. chief executive Kay Krill told investors on Wednesday to expect "much better" first-quarter profit results than what analysts forecast.

Krill, speaking at the company's annual meeting, said that while sales were softer than expected, the company's profits were helped by a restructuring and "strong" gross margins.

“Our performance in the first quarter has benefited from strong gross margins and the significant expense savings that we have achieved through our strategic restructuring program,” Krill said. “However, our top-line results continued to be negatively impacted by the significant decline in consumer spending, especially for women's apparel, and by a product offering at the Ann Taylor division that was not compelling and did not yet reflect the evolution of the brand, which will begin this fall.”