Ann Taylor Changing Merchandise Focus

NEW YORK CITY-In efforts to turn around slumping sales, Ann Taylor’s management is trying to focus on more “modern” clothing at its namesake 349-store chain. The company will incorporate “more holistic” marketing campaign and focus on other styles after a fourth quarter that saw waning demand for women’s suits and classic separates, said Kay Krill, Ann Taylor’s president and chief executive officer, during a conference call.

During recent customer surveys, management found that the chain is “not as clear or as exciting in stores” as it could be, she said. Fourth quarter traffic saw a double-digit decline at the chain.

Same-store sales at Ann Taylor stores fell 7.8% year over year at Ann Taylor stores. By contrast, comparable sales at its 512 Loft units only fell 0.5%. The company’s overall net sales fell to $600.8 million from $610.5 million during the same year-ago period, while operating income dropped to $18.2 million form $30.5 million.