Ann Taylor swings to surprise Q4 profit

New York City Ann Taylor Stores Corp. reported Friday that it swung to a profit in the quarter ended Jan. 30, as it reduced expenses and lowered charges.

The retailer earned $41,000 for the quarter, compared with a loss of $375.6 million in the year-ago period.

The prior-year period included a $286.6 million goodwill impairment charge, as well as $33 million in restructuring charges and $26.8 million in asset impairment charges. The latest quarter included restructuring charges of just $3.6 million.

The performance topped Wall Street expectations.

Sales declined 3% to $469.1 million from $483.4 million, missing analysts' projection of $472.3 million.

Same-store sales were flat during the quarter.

Ann Taylor president and CEO Kay Krill said the quarter benefited from strong product mixes at the retailer's Loft and namesake stores, as well as tight inventory management and promotions.

Ann Taylor's full-year loss narrowed to $18.2 million, from a loss of $333.9 million in the previous year. Sales dropped 16% to $1.83 billion from $2.19 billion, with same-store sales down 17.8%.

Ann Taylor operated 907 stores in 46 states, the District of Columbia and Puerto Rico as of Jan. 30.