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Rue21, Inc. Announces Fourth Quarter And Fiscal Year 2010 Financial Results

Stocks in this article: RUE

Net Sales for the Fourth Quarter of 2010 Increased 22% to $190 million

Net Sales for Fiscal Year 2010 Increased 21% to $635 million

EPS of $0.44 for the Fourth Quarter of 2010 and $1.21 for Fiscal Year 2010

WARRENDALE, Pa., March 15, 2011 (GLOBE NEWSWIRE) -- rue21, inc. (Nasdaq:RUE) today announced its financial results for the fourth quarter and fiscal year ended January 29, 2011.

Highlights for the Fourth Quarter of Fiscal Year 2010:

  • Net sales increased 22.3% to $190.1 million from $155.4 million in the fourth quarter of fiscal year 2009, which ended January 30, 2010.
  • Comparable store sales increased 1.5% on top of an 8.6% increase for the same period in 2009.
  • The Company opened 10 stores in the quarter versus 3 in the same period last year.
  • Gross margin increased to 35.8% from 35.7% in the fourth quarter of fiscal year 2009.
  • Fourth quarter net income increased 41% to $10.9 million from $7.7 million in the fourth quarter of fiscal year 2009.
  • Diluted earnings per share were $0.44 compared to diluted earnings per share of $0.32 in the fourth quarter of fiscal year 2009.
  • Average diluted shares outstanding were 25.0 million in the fourth quarter of fiscal 2010 versus 24.3 million in the comparable period last year.

Highlights for Fiscal Year 2010:

  • Net sales increased 20.8% to $634.7 million from $525.6 million in fiscal year 2009.
  • Comparable-store sales increased 2.1% on top of a 7.8% increase in fiscal year 2009.
  • The Company opened 105 stores, closed 2 stores, and converted 31 stores to the rue21 etc! format. The Company ended the year with 638 stores in 44 states.
  • Gross margin increased 120 bps to 37.0% from 35.8% in fiscal year 2009.
  • Operating margin increased to 7.9% of net sales from 7.0% of net sales in fiscal year 2009.
  • Net income increased 37.4% to $30.2 million from $22.0 million in fiscal year 2009.
  • Diluted earnings per share were $1.21 versus $0.96 for fiscal 2009.
  • The Company ended fiscal 2010 with no long-term debt and $50.1 million in cash and cash equivalents compared to $26.8 million at the end of fiscal year 2009, an 87% increase.

Bob Fisch, rue21's President and CEO, stated: "We are pleased with the consistent performance we were able to deliver to our shareholders in 2010, topped off by 38% earnings per share growth in the fourth quarter. We opened 105 stores in 2010 which performed above our expectations. The Company had strong growth across all categories, with our etc! accessories merchandise leading the way as we converted 31 stores during the year to our larger etc! format.  We are planning for 110 new stores and approximately 35 conversions in 2011. I am pleased with February and early March results due to our excellent selling of regular priced merchandise in all categories of business. We feel well positioned to achieve another quarter of profitable growth."

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