AnnTaylor Stores (NYSE:ANN) is expected to report Q3 earnings before market open Friday, November 21, with a conference call scheduled for 8:30 am ET.
Analysts are looking for a profit of 1c on revenue of $531.92M. The consensus range is (1c) to 4c for EPS, and revenue of $526.57M to $596M, according to First Call. On November 6, the company said that Q3 results were "tracking well below expectations," as the dramatic deterioration in both the financial markets and the macroeconomic environment in September and October has put additional pressure on the retail industry, particularly the women's apparel sector.
Ann Taylor forecast Q3 revenue approximately $427M and said same-store sales declined approximately 19%. Under its expanded strategic restructuring program which involves cutting 260 more jobs and "significantly" cutting back capital spending next year, the company expects to generate total ongoing annualized savings of $80M to $90M over three years, compared with the $50M previously expected. AnnTaylor expects the current weakness in consumer spending to persist through Q4 and into 2009.
In a note to investors, Barclays analyst Jeff Black said that while the cost-cutting program should benefit the company soon, the benefits have been "slow to materialize". He also says that "even the most stringent cost cuts could still be ineffective" with SSS trends that will likely continue to trend lower in Q4.