UPDATE 1-AnnTaylor to close stores, cut jobs, slow openings

(Adds details about restructuring plan)

NEW YORK, Jan 30 (Reuters) - Women's clothing retailer AnnTaylor Stores Corp (ANN.N) on Wednesday announced a restructuring that includes closing 117 stores and cutting 13 percent of staff at its headquarters.

The company, which operates the LOFT chain in addition to its namesake chain, said the plan should increase its operating margin by more than 200 basis points over the next three years.

The company also said it plans to open fewer stores and delay until next year the launch of its new store concept in light of "the current macro environment and retail slowdown."

At the same time, Ann Taylor said it will invest "aggressively" in factory outlet stores as a hedge against an economic slowdown, Chief Executive Kay Krill said in a statement.

The changes are expected to result in annual pretax savings of about $50 million by fiscal year 2010, with $20 million to $25 million realized in the current fiscal year.

About $40 million of the annual savings is expected to be cash savings, some of it stemming from the layoffs of 180 corporate employees.

The restructuring plan is expected to cost $40 million to $45 million pretax, with $29 million, or 29 cents per share, incurred in fiscal 2007, the company said.

However, Ann Taylor let stand its previous fiscal 2007 forecast for earnings of $1.80 to $1.85 per share, excluding those expenses.

About $25 million of the total restructuring costs are expected to be in noncash expenses associated with the write-down of assets from store closures.

The company said it expects to book about $7 million to $10 million in restructuring costs in fiscal 2008, and $4 million to $6 million over 2009 and 2010.

More than half of the underperforming stores slated for closure will be shuttered in 2008, with the rest closed over the following two years. Those stores contributed an estimated $210 million to sales and had "minimal" impact on operating income in fiscal 2007, the company said. (Reporting by Martinne Geller and Gina Keating; Editing by Gary Hill)