“We remain optimistic about our business as we begin the fourth quarter and believe we have identified the right strategies and compelling assortments to optimize the holiday season,” Mr. Reinckens continued. “Validating this is our October comparable store sales, which were up 17.5% for the four-week period, improving upon the first nine months of the year. In addition, we are very pleased with the performance of our recently upgraded web platform as evidenced by our e-commerce sales, which are up over 100% in October. In total, we remain confident in our strategies and our ability to generate continued progress toward our long term goals.”
For the 39-week period ended October 1, 2011:
- Net sales increased 6.9% to $161.0 million from $150.6 million in the first nine months of fiscal 2010. Comparable store sales increased 6.4%, as compared to a decrease of 0.6% in the first nine months of fiscal 2010;
- Gross profit increased 20.2% to $69.2 million, or 43.0% of net sales compared to $57.6 million, or 38.2% of net sales, in the first nine months of fiscal 2010;
- Operating loss totaled $143,000, as compared to an operating loss of $13.3 million in the first nine months of fiscal 2010; and
- Net income was $205,000 or $0.02 per share. This compares to a net loss of $8.2 million or ($0.64) per share in the first nine months of fiscal 2010, which included $0.08 per share in legal fees.
Gross profit for the third quarter of fiscal 2011 was $19.8 million, or 40.6% of net sales, compared to $15.9 million, or 34.9% of net sales, in the third quarter of fiscal 2010. For the first nine months of fiscal 2011, gross profit was $69.2 million, or 43.0% of net sales, compared to $57.6 million, or 38.2% of net sales, in the first nine months of fiscal 2010. Gross profit margin expansion in the third quarter and first nine months of fiscal 2011 was primarily driven by an increase in full price sales, an increase in initial mark-up and by lower markdowns as a percent of sales.