NEW YORK--Ann Taylor Stores Corp. reported second-quarter earnings before special items more than doubled to $7.9 million from $3.6 million a year earlier.
After a $868,000 charge for debt refinancing, net income totaled $7.1 million, or 30 cents a share. A year ago, after charges of $10.5 million for relocating a distribution center and amortization of goodwill, the company had a net loss of $6.9 million. In the quarter ended July 30, sales jumped 28.1 percent to $160 million from $124 million, with same-store sales up 12.3 percent.
Sally Frame Kasaks, chairman, said the company continues to strengthen its market position with product extensions. Ann Taylor petites, introduced in fall 1993, will be in about 100 stores this fall. The Ann Taylor Studio shoe collection will be extended to 150 locations, and the company will begin testing freestanding shoe and accessories stores. The fragrance, "Destination," will be launched this month in the fall catalog, and will be in stores by November.
As reported, in the second quarter, the firm completed a public offering of one million shares at $32 a share. Proceeds of about $30 million were used to reduce debt.
In July, Ann Taylor completed refinancing its outstanding long-term bank debt by entering into a new $75 million revolving credit facility.
In the quarter, the company opened one new Ann Taylor store, two new Ann Taylor factory stores, expanded 10 stores and one factory store, and closed two Ann Taylor units. Its total is now 222 Ann Taylor Stores and 13 factory stores.
--Fairchild News Service

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