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Market Update : 
Ann Taylor Stores Q1 Earnings Call Transcript
Author: 123jump.com Staff
123jump.com
Last Update: 9:53 AM ET May 24 2009


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Your next question comes from Robin Murchison, SunTrust.

Robin Murchison - SunTrust Robinson Humphrey

Good morning and thanks for taking my question. Kay, on the back half merchandise that, core Ann Taylor, would you comment on the price points. It looks like they’re edging up.

Kay L. Krill

The price point strategy in Ann Taylor is really not going to change going into the back part of the year. In the fall our mix is going to shift a little bit more towards the better separates categories and we’re going to more natural yarns in the tops world but we expect a slight average ticket increase because of mix but item for item, Robin, we are really not taking the prices up at all. But what we are going to be offering, that’s why I’m so excited about the value component is the fabrics are far superior to what we had before and we have as Mike said, really value engineered them in a more meaningful way to be more relevant and for the same price.

For example, I’ll just give you an example, pants we took the linings out because clearly that was a dated thing to have linings in your pants and so we were able to save money there but we were able to put a pant curtain on and offer a better fabric in some instances. So, the average, the retails are not going to have an uptick but the value will be even more pronounced.

Robin Murchison - SunTrust Robinson Humphrey

It looks like you’re integrating more of that collection look that you had in past seasons, I don’t think you’re doing so much anymore, but taking that look and making it more representative of the entire mix.

Kay L. Krill

Yes, the whole entire, are you referring to the PR book that you got?

Robin Murchison - Sun Trust Robinson Humphrey

Right.

Kay L. Krill

Yes, the assortment is definitely more modern and has a better hand than the Ann Taylor core assortment has had in a long time, so you’re absolutely correct.

Robin Murchison - SunTrust Robinson Humphrey

Thank you very much and good luck.

Operator

Your next question comes from the line of Dana Telsey, Telsey Advisory Group.

Dana Telsey - Telsey Advisory Group

Hi, good morning, everybody. Can you talk a little bit about how you envision the box, Kay, in terms of the split between whether its accessories, petites, casual, wear to work? How do you want the complexion to be in each division, what does it mean for margins, and also what does it mean for sourcing? Thank you.


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