Ann Taylor Quarterly Earnings Drop 49%

AnnTaylor Stores Corp. said fiscal third-quarter profit fell 49% to $12.1 million, or 40 cents a share, matching analysts' reduced forecasts, as it cut prices to move merchandise.

Sales rose 1.6% to $310.8 million, while same-store sales dropped 14%.

The New York-based apparel retailer also said it will open half as many stores next year than originally planned.

Shares of AnnTaylor closed up 74 cents at $26.99 on the NYSE before the results were released.