Rue21, Inc. Announces Third Quarter Fiscal 2010 Financial Results
Third Quarter Net Sales Increased 19.5% with Comparable Store Sales Increasing 1.8%
Management Raises Fiscal 2010 Earnings Guidance
WARRENDALE, Pa., Dec. 1, 2010 (GLOBE NEWSWIRE) -- rue21, inc. (Nasdaq:RUE) today announced its financial results for the third quarter and fiscal year-to-date ended October 30, 2010.Highlights for the Quarter:
- Net sales increased 19.5% to $163.9 million from $137.1 million for the comparable period a year ago, which ended October 31, 2009.
- Comparable store sales increased 1.8% on top of a 13.5% increase for the same period in 2009.
- The Company opened 33 stores in the quarter versus 29 in the same period last year. The Company converted an additional 9 stores to the rue21 etc! format versus 7 in the same period last year, and ended the quarter with 628 stores.
- Gross margin increased 40 bps to 36.6% from 36.2% in the third quarter of fiscal 2009, driven by a merchandise margin increase of 60 bps.
- Selling, general and administrative expenses increased 21.4% to $42.6 million, which included incremental public company and share-based compensation costs of $1.1 million.
- Third quarter net income increased 19.5% to $7.1 million from $6.0 million in the third quarter of fiscal 2009. Adjusting for incremental public company expenses and share-based compensation costs in the third quarter of fiscal 2010, net income increased 29.4%.
- Diluted earnings per share were $0.29 in the third quarter of fiscal 2010 compared to diluted earnings per share of $0.26 in the third quarter of fiscal 2009.
- Average diluted shares outstanding were 25.0 million in the third quarter of fiscal 2010 versus 23.1 million in the third quarter of fiscal 2009.
- The Company ended the third quarter of fiscal 2010 with $18.7 million in cash and cash equivalents, and with no long-term debt.
- Net sales increased 20.1% to $444.6 million from $370.2 million for the comparable period a year ago, which ended October 31, 2009.
- Comparable-store sales for the period increased 2.4% on top of a 7.4% increase for the same period in 2009.
- Year-to-date the Company has opened 95 stores, closed 2 stores, and converted 31 stores to the rue21 etc! format.
- Gross margin increased 170 bps from the comparable period in 2009.
- Operating margin increased to 7.2% of net sales from 6.5% of net sales for the comparable period in 2009.
- Year-to-date net income increased 35.4% to $19.4 million from $14.3 million for the comparable period in 2009. Adjusting for incremental public company expenses and share-based compensation costs, year-to-date net income increased 52.2%.
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