NEW YORK (AP) — Ann Inc. on Thursday cuts its revenue prediction for the quarter that ended in January to a level below analyst expectations, citing slumping sales at its Ann Taylor stores. The company also replaced its Ann Taylor brand president.
Its stock slid $2.61, or 10.6 percent, to $21.95 in premarket trading in Thursday.
The company said that its Ann Taylor brand president, Christine Beauchamp, is leaving to pursue other opportunities. It's replacing her with Brian Lynch, who had been president of the Ann Taylor Factory and Loft Outlet divisions and led the website sales for those brands.
Sales at the women's clothing seller's pricier Ann Taylor stores have lagged sales at the less expensive, more casual Loft chain, while online sales have been a bright point overall.
The New York company said Thursday that it now expects revenue of $566 million for the November-January quarter, which makes up the key holiday selling period. In mid-November, it had predicted revenue of $580 million for its fiscal fourth quarter.
Analysts surveyed by FactSet were expecting revenue of $578.2 million.
Online revenue and revenue at stores open at least a year rose 5 percent in the November-January period from the year before. This figure is a key indicator of a retailer's health because it excludes results from stores recently opened or closed.
Ann Taylor was a drag: The metric fell 1 percent across the brand because of an 11 percent sales decline in physical stores. The measure rose 28 percent at Ann Taylor's website and 6 percent in the brand's factory stores.
The company also said it had to discount more than it had expected at Ann Taylor stores during the holiday quarter.
For Ann's Loft stores, the key revenue metric rose 11 percent — sales rose at retail stores and outlets and surged 28 percent online.
For the full fiscal year, Ann now expects revenue of $2.21 billion, down from its previous prediction of $2.23 billion. Wall Street was forecasting $2.22 billion.
The company also said it expects earnings per share growth of more than 25 percent from the year before. That suggests earnings per share of at least $1.55. Analysts were expecting $1.89.
Ann will report its fourth-quarter financial results on March 9.
The retailer had 950 stores as of Oct. 29.
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