UPDATE 2-AnnTaylor expanding outlet store business

* To open 40 new outlets in Q2 2011

* Says new stores will add $75 million to FY 2011 rev

* Says expansion will cost $25 million in FY 2011

* Says new stores will create 1,000 jobs

* Shares up 4.2 percent
(Adds analyst comment, share activity)

NEW YORK, Oct 28 (BestGrowthStock) – Women’s clothing retailer
AnnTaylor Stores Corp (ANN.N: ) said on 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, 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.

In a note to clients, FBR Capital Markets analyst Liz Dunn
said the expansion of outlets was “a significant positive
development that will allow the company to accelerate its
growth plans.”

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.

Shares rose 91 cents, or 4.2 percent, to $22.65 in
afternoon trading.
(Reporting by Phil Wahba, editing by Gerald E. McCormick, Dave
Zimmerman)

UPDATE 2-AnnTaylor expanding outlet store business