Although Ann Inc. began the quarter on a positive note, the company was unable to capitalize on the momentum it generated through mid-June. The second half of the quarter was marked by softer traffic levels and a highly promotional environment that pressured sales and margin.
The company reported earnings of $32.7 million in the quarter, down from $35.6 million in the second quarter of 2013. Its results were in line Wall Street expectations. Looking ahead, the company forecast revenue for the third quarter below Street estimates and also lowered its revenue outlook for fiscal 2014.
Total net sales for the quarter were $648.7 million, compared with net sales of $638.2 million in the year-ago period.
Total company same-store sales decreased 2.3%. At Ann Taylor, same-store sales increased 0.7%, reflecting an increase of 2.0% at Ann Taylor, partially offset by a decline of 1.9% in the Ann Taylor factory channel.
Same-store sales at Loft fell 4.1%, with a decrease of 5.2% at full-priced Loft stores and an increase of 0.3% in the Loft outlet channel.
“Loft experienced continued softness in basic knit tops, which represented a significant component of its summer assortment,” said Kay Krill, president and CEO.