During the second quarter of fiscal 2013, the Company reversed $5.9 million of its reserve for uncertain income tax positions for which the statute of limitations expired. This adjustment resulted in an income tax benefit of $5.9 million during the quarter. In addition, the Company reversed $2.8 million of accrued interest related to these uncertain tax positions. For the last half of fiscal 2013, income tax expense is expected to be approximately 38% to 39% of pre-tax income. The Company’s effective tax rate for fiscal year 2013 is expected to be approximately 35% to 36% of pre-tax income.
Fiscal 2013 Guidance
The Company’s fiscal year 2013 will include 53 weeks of operating results. The Company provided the following updated financial guidance for fiscal 2013 on a 52-week basis:
- Comparable store sales growth in the mid single-digit range
- Earnings per share (GAAP) in the range of $1.15 to $1.21
- Earnings per share (non-GAAP) in the range of $1.10 to $1.16, representing year-over-year growth of 17% to 23%, compared to prior guidance of $1.08 to $1.14
- Capital expenditures of approximately $70 to $75 million