EX-99 3 cprel418.txt EXHIBIT 99.1 ANN TAYLOR CORPORATION TARGETS TO DELIVER 18%-20% COMPOUNDED EPS GROWTH ----------------------------------------------------------------------- THROUGH COMPANY'S EFFORTS TO ACHIEVE CONSISTENCY IN SALES AND OPERATING ----------------------------------------------------------------------- MARGIN GAINS ------------ -- COMPANY REAFFIRMS PREVIOUSLY PROVIDED GUIDANCE FOR 2002 -- FOR IMMEDIATE RELEASE --------------------- NEW YORK, NEW YORK, APRIL 18, 2002 - Ann Taylor Stores Corporation (NYSE: ANN) is targeting to achieve earnings per share growth in the range of 18% to 20% over 2003- 2005, the Company's Chairman and Chief Executive Officer, J. Patrick Spainhour, today told analysts at a webcast investor conference held today at the New York Stock Exchange. Mr. Spainhour said that these earnings objectives can be met if the Company more consistently delivers on the expectations of the Ann Taylor client. The target is to drive annual top line sales growth in the range of 12%, based on comparable store growth in the 3% range at both the Ann Taylor and Ann Taylor Loft. The Company is also targeting to reach double-digit operating margins. "The Ann Taylor brand appeals to broad and highly appealing demographics - possibly among the best in the industry. By taking steps to deliver more consistently on our clients' expectation of updated classic styling, we believe we can meet our targeted growth rates. With the right strategy and right team now in place, we are well-positioned to produce over time the value our shareholders know Ann Taylor is capable of achieving," Spainhour said. At the meeting, Barry Erdos, Ann Taylor's Chief Operating Officer, also said that the Company was comfortable with its previous earnings per share guidance for 2002 of $2.01- $2.12 on a diluted basis. Quarterly estimates for the year are projected to be $0.60- $0.62, $0.34- $0.36, $0.63- $0.66 and $0.44- $0.48 for the first through fourth quarters, respectively. "We have worked hard to set our house in order and the financial benefits are starting to show," said Mr. Erdos. "While we are taking a conservative view on comps - for the spring 2002 season we expect comparable store sales flat to last year and for fall 2002 we are projecting comparable store sales in the low single digit positive range - we expect gross margin for the year to improve approximately 100 basis points over the 50.2% achieved in fiscal 2001. Achievement of this rate would represent the highest merchandise gross margin in the Company's history." Ann Taylor held a webcast of its Annual Analyst Meeting from the boardroom of the New York Stock Exchange. Kim Roy, President of the Ann Taylor Division, Kay ================================================================================ 2 Krill, President of the Ann Taylor Loft Division, and Catherine Sadler, Chief Marketing Officer participated with Messrs. Spainhour and Erdos in the presentation and a question and answer session. The meeting was broadcast live over the Internet. For the webcast, log on to the Ann Taylor Investor Relations web site at http://investor.anntaylor.com and ----------------------------- click on the event link. The webcast will be available for replay through Thursday, April 30, 2002. Ann Taylor is one of the country's leading women's specialty retailers, operating 544 stores in 42 states, the District of Columbia and Puerto Rico, and also an Online Store at www.anntaylor.com. ----------------- # # # FORWARD-LOOKING STATEMENTS Certain statements in this press release are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements may use the words "expect", "anticipate", "plan", "intend", "project", "believe" and similar expressions. These forward-looking statements reflect the Company's current expectations concerning future events and actual results may differ materially from current expectations or historical results. Any such forward-looking statements are subject to various risks and uncertainties, including failure by the Company to predict accurately customer fashion preferences; decline in the demand for merchandise offered by the Company; competitive influences; changes in levels of store traffic or consumer spending habits; effectiveness of the Company's brand awareness and marketing programs; lack of sufficient customer acceptance of the Ann Taylor Loft concept in the upper-moderate-priced women's apparel market; general economic conditions or a downturn in the retail industry; the inability of the Company to locate new store sites or negotiate favorable lease terms for additional stores or for the expansion of existing stores; lack of sufficient consumer interest in the Company's Online Store; a significant change in the regulatory environment applicable to the Company's business; an increase in the rate of import duties or export quotas with respect to the Company's merchandise; financial or political instability in any of the countries in which the Company's goods are manufactured; acts of war or terrorism in the United States or worldwide; and other factors set fourth in the Company's filings with the SEC. The Company does not assume any obligation to update or revise any forward-looking statements at any time for any reason. # # # Contact: Barry Erdos Chief Operating Officer (212) 541-3318 Doreen D. Riely Director, Investor Relations (212) 541-3484