Dive Brief:

• Ann Inc. beat analyst expectations with its Q3 net income of $29.9 million, down 27% from Q3 last year.

• Q3 same-store sales fell 4.3%, the first negative same-store sales in 10 quarters.

• The retailer said same-store sales will decline in Q4 and for the full year, and expects to close 40 stores.

Dive Insight:

Ann Inc., which runs Ann Taylor, Loft, and Lou & Grey stores, said it’s experiencing slowing demand and inventory issues from the labor problems at West Coast ports, and is using a lot of promotions to bring in sales. Its flagship Ann Taylor brand is experiencing a 22% increase in inventory and is struggling to connect with customers, the company said.

Private equity firm Golden Gate Capital, which owns a 10% stake and has expertise with specialty retail, is said to be interested in making changes at the company, including possibly selling it, taking it private, or changing up management.