Basics Segment Review
The basics segment had sales of $77.1 million for the quarter ended July 2, 2011, an increase of 6.5% compared to the prior year fourth quarter, driven by sales growth in catalog products, partially offset by declines in the private label programs. The revenue growth resulted from a 22.2% increase in average selling prices partially offset by lower unit sales. For the twelve months ended July 2, 2011, the basics segment had sales of $253.5 million, an 11.9% increase from sales of $226.6 million in the prior year driven from higher average selling prices offset by a slight decline in units sold. Higher selling prices, coupled with strong manufacturing results and the ability to leverage selling, general and administrative expenses, resulted in operating income of $8.8 million for the fourth fiscal quarter and $16.9 million for fiscal year 2011. This compares to operating income of $3.0 million in the fourth quarter of the prior year, and $2.9 million for fiscal year 2010.
On August 17, 2011, the Company’s Board of Directors approved a $5 million increase in the Company’s Stock Repurchase Program, bringing the total authorization to $20 million. This marked the fourth increase since the program began in November 2000. Since inception, the Company has spent approximately $12.1 million under the Stock Repurchase Program, buying back approximately 1.2 million shares at an average price of $9.81. In fiscal year 2011, the Company spent $2.5 million repurchasing 177 thousand shares at an average of $14.18 per share. Approximately $8.0 million remains available for future stock repurchases pursuant to the Stock Repurchase Program.Fiscal 2012 Guidance The Company is maintaining its fiscal year 2012 outlook for sales and earnings. For the fiscal year ending June 30, 2012, the Company still expects net sales to be in the range of $500 to $520 million and earnings to be in the range of $2.00 to $2.15 per diluted share.