Traffic woes still hurting Ann Inc.

Just days after it agreed to sell itself to Ascena Retail Group for $2.2 billion, Ann Inc. posted another mixed financial report.

For the first quarter ended May 2, same-store sales declined 1.5% overall at Ann Inc., as Ann Taylor brand sales fell 3% and Loft brand sales were down 0.6%. The company reported a profit of $13.6 million, or 29 cents a share, up from $5.2 million, or 11 cents a share, a year ago.

Kay Krill, president and CEO at Ann Inc., said: "The results reflected a weak February but positive comparable sales performance at both Ann Taylor and LOFT in the combined March and April period, as clients responded positively to our new Spring assortments that coincided with the onset of warmer weather.”

For the current quarter, the company predicted sales of $660 million, while analysts had forecast $659 million in revenue. For the year, the company now expects its sales to come in at $2.56 billion, down from the $2.57 billion it had forecast in March.

"Overall, we continue to focus on delivering meaningful growth on both the top and bottom lines as the year progresses,” Krill added. “We are excited about the product and merchandising strategies we have underway, as well as our progress towards further enhancing the brand experience for our clients across multiple touchpoints. We're very pleased with the early completion of our endless aisle roll-out, which further enhances our strong omni-channel capabilities. In addition, we look forward to the contributions from our other strategic initiatives, including our Supply Chain Initiative, SG&A Optimization Program and the growth of Lou & Grey, as we continue to take steps to grow our business and increase profitability."

During the first quarter of fiscal 2015, the company opened eight new stores, comprised of two Ann Taylor Factory stores, four LOFT stores, one LOFT Outlet store and one Lou & Grey store, and closed three Ann Taylor stores and one LOFT store. The total store count at the end of the fiscal first quarter of 2015 was 1,034, comprised of 242 Ann Taylor stores, 118 Ann Taylor Factory stores, 540 LOFT stores, 128 LOFT Outlet stores and six Lou & Grey stores.

The transaction with Ascena is expected to close in the second half of 2015, the company said.