Ann Inc. (ANN) lowered its outlook for the fiscal first quarter, pointing to its weaker-than-anticipated performance and increased promotions, particularly at its Loft chain.

"In light of the unseasonably cold weather this spring, we were more promotional than planned in order to move through warm-weather product categories, particularly at Loft," Chief Executive Kay Krill said.

However, the women's apparel retailer, which operates the Ann Taylor and more casual Loft chains, also said it entered the second quarter with clean inventories and is well-positioned with fresh new fashion at both brands.

"We are pleased to note that sales have improved since late April with the arrival of more seasonable temperatures, resulting in positive comparable sales at both brands," Ms. Krill said.

Ann has previously said it made some fashion misfires, like bright colors, that didn't resonate with customers last fiscal year, pressuring results.

Ann expects net sales of $575 million for the quarter ended last month, with same-store sales falling 0.5%. In March, it guided for $600 million in sales on a same-store sales increase in the low-single digits.

By brand, same-store sales increased 1.9% at Ann Taylor, while falling 1.9% at Loft. The company expects gross margin to be 55.8%, reflecting higher-than-expected promotions, primarily at Loft. It previously guided for 56.5%.

"From a comparable sales standpoint, LOFT's softer-than-anticipated performance reflected the breadth and depth of its warm-weather offering, combined with a challenging comparison," Ms. Krill said.

In factory outlet centers, the company said soft traffic continued to pressure same-store sales at both Ann Taylor Factory and Loft Outlet stores, although margins remained strong in these channels.

Shares of the company, which is slated to report results June 6, dropped 20 cents premarket to $30.01 and have fallen 11% so far this year.

Write to Lauren Pollock at lauren.pollock@dowjones.com

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