UPDATE 2-AnnTaylor to cut more jobs, sees modest Q2 profit
* AnnTaylor says will cut about 160 jobs
* Sees Q2 EPS, revenue ahead of Wall St expectations
* Shares up 5.6 pct (Adds comments from CEO, analyst, byline; previous dateline CHICAGO)
NEW YORK, July 30 (Reuters) - AnnTaylor Stores Corp (ANN.N) said on Thursday it plans to cut about 160 office jobs and close 30 more stores as it expands a restructuring begun last year to curb costs in a weak economy.
The women's clothing retailer also said its second-quarter results should be better than analysts were expecting, helping lift its shares 5.6 percent.
The operator of the Ann Taylor and Ann Taylor LOFT chains has been trying to turn around its business, which has endured losses and deep sales declines due to weak consumer spending and some fashion missteps.
The 3-year restructuring plan, to be completed in fiscal 2010, will yield savings of $125 million a year, the company said, up from its prior target of $85 million to $95 million.
"The company is obviously on a mission to get back in the game with a vengeance," said independent retail analyst Jennifer Black in a note to clients. "We believe they are well on their way."
AnnTaylor expects restructuring costs of $130 million to $140 million, with about $92 million of that having already been taken.
Excluding restructuring and impairment costs, the company said earnings should be slightly better than break-even for the second quarter ending Aug. 1.
It expects revenue of $470 million, as sales at stores open at least a year remain weak, primarily at Ann Taylor stores, which sell a lot of suits and dresses women can wear to work.
Analysts, on average, were expecting a loss of 2 cents per share on revenue of $460.9 million, according to Reuters Estimates.
Chief Executive Kay Krill told Reuters that quarterly performance at the less expensive and more casual LOFT chain was "definitely stronger than Ann Taylor's."
LAYOFFS AND CLOSURES
The latest round of job cuts will take place primarily in AnnTaylor's corporate and divisional home offices, affecting about 10 percent of that group's staff and about 1 percent of the whole company. Continued...
