Restructuring charges dampen Ann Inc. earnings
New York - A pre-tax restructuring charge of $17.3 million during first quarter 2014 in connection with its previously announced strategic realignment was a major factor in a year-over-year net income decline at Ann Inc. Net income for the quarter totaled $5.2 million, down 66% from $15.4 million in the first quarter of the previous fiscal year.
Total net sales for the first quarter of fiscal 2014 were $590.6 million, up 3% increase from sales of $574.5 million in the year-ago period. Total same-store sales dropped 1.8%.
"Despite the headwinds of severe winter weather, soft traffic across the industry and the resulting higher than anticipated promotional environment, we delivered first quarter results that met our bottom-line expectations,” said Kay Krill, president and CEO, Ann Inc. “Importantly, traffic and sales accelerated with the return of more seasonable weather, driving positive comparable sales for April and into May.”
For the fiscal second quarter of 2014, the company expects total net sales to be $670 million, reflecting a total same-store sales increase in the low-single digits. For the fiscal year, total net sales are expected to be $2.61 billion, reflecting a total same-store sales increase in the low-single digits.