A day after women's clothing retailer Ann Taylor (NYSE: ANN) announced a 5 percent drop in same-store sales in July, it was also announced that chief financial officer James M. Smith would be leaving to "pursue other interests" as of the end of September. Ann Taylor is seeking a successor. The share price fell 3.5 percent to $28.44 Friday.

Same-store sales for July 2006 grew from the previous period by about 5 percent. The drop in July 2007 is due in large part to same-store sales of Ann Taylor LOFT, which decreased 9.3%, compared to an increase of 8.3% in the prior year. According to president and CEO Kay Krill: "We are aggressively managing the business through this period of macro-economic softness and, while we continue to believe that we are positioned for a good Fall season, we are prudently planning our business for an uncertain second half."

About Smith's departure, Krill says, "We are grateful to Jim for his service to the company over the past 14 years. We are pleased that he has agreed to stay on to support a smooth transition. ... On behalf of our board and all of our associates, we thank Jim for his many contributions to the company over the years and wish him well as he pursues new opportunities."

Ann Taylor is scheduled to announce its second quarter 2007 results on Friday, August 24. The consensus recommendation of analysts surveyed by Thomson/First Call is to buy. They expect an EPS of $0.50, up from $0.46 in the previous quarter.