Aug. 21 (Bloomberg) -- AnnTaylor Stores Corp., the retailer of women’s business attire, fell 5.6 percent in early trading after reporting a 21 percent drop in revenue in the second quarter and forecasting continued pressure on sales this year.

Sales at locations open at least one year declined 22.5 percent, the New York-based company said today in a statement. Comparable-store sales at Ann Taylor stores plummeted 38 percent, while those at Loft dropped 15.4 percent.

To improve profit margins while the recession and high unemployment trim demand for its merchandise, the company has cut jobs and closed stores. AnnTaylor announced on July 30 an extension of its January 2008 cost-cutting program that it said will save the company about $125 million annually through 2010, compared with an earlier forecast of as much as $95 million.

The retailer has shed about 600 positions since the restructuring began, according to Wendi Kopsick, a company spokeswoman. It plans to close 193 stores by the end of 2010, and has shuttered 60 since the program started, she said. The retailer had 933 locations at the end of the second quarter.

The company forecast a “slight sequential improvement” in total sales and gross margin for the third quarter.

Profit excluding restructuring costs totaled 6 cents a share, the company said. Analysts anticipated 3 cents, the average of 15 estimates compiled by Bloomberg. The net loss was $18 million, or 32 cents a share, compared with a profit of $29.3 million, or 50 cents, a year earlier.

AnnTaylor fell 72 cents to $12.10 at 8:56 a.m. New York time in trading before U.S. exchanges opened. Before today, the shares had more than doubled this year on the New York Stock Exchange.

To contact the reporter on this story: Allison Abell Schwartz in New York at aabell@bloomberg.net.

Last Updated: August 21, 2009 09:13 EDT