• Wall Street Journal, Thursday, May 21, 2009 11 AM

Kay Krill, president and CEO of Ann Taylor Stores, plans to overhaul the brand this fall. Look for more modern, fashionable pieces featuring shorter hemlines, softer fabrics and more fitted cuts in refined, often muted colors, Elizabeth Holmes reports. It will hold the line on prices by making adjustments such as removing the lining from some pants.

In announcing a first-quarter loss Wednesday, Krill admitted that some of the retailer's loss was "self-inflicted," allowing that "the product assortment was not compelling or relevant." Traffic to its stores was steady, but sales at stores open at least a year fell nearly 43%.

Ann Taylor will also shake up its merchandise mix by featuring a "small core foundation" of staples -- such as "the perfect pencil skirt" -- for an entire season rather than monthly product changes. Those pieces will make up roughly 20% of the merchandise.

Read the whole story at Wall Street Journal »