A new outlet store prototype has been extremely successful, and the chain could easily grow from its current number of 52, said Kay Krill, president and CEO of AnnTaylor Stores Corp.
"We feel strongly about the future of this business," Krill said.
Ann Taylor currently operates 828 stores under the Ann Taylor, LOFT and Ann Taylor Factory stores banners. A new concept is being researched, and will be presented to the board in November, Krill said.
The new units and concept are part of a corporate turnaround effort, that also includes the company's signature stores and a new prototype for LOFT. By the end of this year, 52 Ann Taylor stores will have been "rebranded," remodeled into the company's new focus on special occasion and careerwear. At least 50 more stores will be rebranded in 2007.
"By the end of 2007, half of Ann Taylor will be updated," Krill said.
Net sales for the quarter totaled $610 million, up 19.9% from the same period last year. Comparable store sales for the second quarter of fiscal 2006 rose 10.3%. Earnings totaled $43.2 million compared with net income of $7.1 million in 2005, a five-fold increase, and the company's highest earnings in its history.
"We are truly delighted with the progress we have made this year," Krill said. She warned, however, that the company is being cautious about the second half due to macroeconomic issues, including gasoline prices.
The company also continues to grow its store count. In 2006, Ann Taylor plans to open approximately 55 to 60 LOFT stores, 10 Ann Taylor stores, and five Ann Taylor Factory stores. The new LOFT prototype has been extremely successful, Krill said. A LOFT flagship will open later this year on the ground floor of its headquarters at Times Square in New York City. E-commerce also will be an increasing focus, Krill added.
"We see online sales as a real growth platform for us," she said.
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