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By
Reuters
Published
Oct 28, 2010
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AnnTaylor expanding outlet store business

By
Reuters
Published
Oct 28, 2010

NEW YORK, Oct 28 (Reuters) - Women's clothing retailer AnnTaylor Stores Corp (ANN.N) said Thursday it is planning to significantly ramp up its outlets business by opening 40 new stores next year at locations previously occupied by rival Liz Claiborne Inc (LIZ.N).

AnnTaylor

AnnTaylor, which operates a chain of namesake stores and the more casual, less expensive LOFT chain, is planning to open about 35 LOFT outlets and five Ann Taylor Factory stores in the second quarter of its fiscal year 2011, a period that will end in July 2011.

The retailer currently operates about 110 outlets in all.

AnnTaylor said it expect the new outlets to generate additional revenue of $75 million in its fiscal 2011, and add to earnings per share for that year.

The company said the new outlets would create about 1,000 jobs.

Capital expenditures stemming from opening the new outlets will come to $25 million in its fiscal year 2011, it said.

The company operates about 280 regular Ann Taylor and 506 regular LOFT stores.

AnnTaylor's move comes at a time when many retailers, such as Saks Inc (SKS.N), Nordstrom Inc (JWN.N) and Neiman Marcus [NMRCUS.UL] are also rapidly expanding their outlet business.

(Reporting by Phil Wahba, editing by Gerald E. McCormick)

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