Ann Taylor swings to loss in Q2 on decreased sales and charges, but tops view

New York City Ann Taylor Stores Corp. on Friday posted a second-quarter loss as sales fell and the retailer recorded restructuring costs.

The apparel retailer lost $18 million in the three months that ended Aug. 1, compared with a year-ago profit of $19.3 million. The loss was not as bad as analysts had expected.

Ann Taylor reported restructuring charges of $21.6 million, compared with $2 million in the same period a year earlier.

Sales fell 21% to $470.2 million. Analysts had expected $472.2 million in revenue. Same-store sales fell 22.5%, with a 38% drop at the Ann Taylor chain and a 15.4% decline at LOFT.

For the rest of the year, the company expects margins to improve due to tight inventory management, improved merchandise at both chains and an expectation that the retail sector overall will see less deep promotions.

Total square footage is expected to be decline 3.6% by the end of the year, as the company closes underperforming stores. It expects capital expenditures of $35 million for the year.