Ann Taylor expects Q4 profit to top expectations

New York City Ann Taylor Stores Corp. said Tuesday that its fourth-quarter earnings will be "substantially higher" than a year ago and surpass expectations on better-than-expected sales and gross margin rate.

The retailer cited better product mixes at both Loft and namesake stores as the reason for much of the improvement.

President and CEO Kay Krill also credited the success of Ann Taylor's planned promotions as well as its inventory approach with helping its performance.

Ann Taylor did not provide a specific guidance for its fourth-quarter profit, but said it expects quarterly sales near $470 million, up from what the retailer previously forecasted.

Ann Taylor also expects same-store sales to be about flat for the quarter.

The earnings report is set for release on March 12.