Photo: Ann Taylor
Ann Taylor blamed lower sales and too many promotions for its 73 per cent drop in Q4 earnings on Friday.The flagship brand is responsible for the losses, whereas its LOFT division — which targets younger, trendier consumers — is doing just fine.
To offset these losses, CEO Kay Krill told investors that the company plans to make four major changes (via WSJ):
“More affordable initial prices will be offered, assortments will feature more colours, greater depth in key fashion lines will be available and customer service will be stepped up.”
Ann Taylor has been working on its image for a while, promoting longtime Ann Taylor VP Brian Lynch to brand president in February to launch a turnaround. It’s also been focusing on reaching younger consumers overall and revamping its e-commerce site.
The problem of too many big promotions is something companies like JC Penney have faced for a while, which is why it recently launched a new pricing strategy.
Business Insider Emails & Alerts
Site highlights each day to your inbox.