Fourth Quarter 2012 Outlook
Given some recent variability in sales trends and the importance of the upcoming holiday period to our quarterly results, we believe it is prudent to be slightly more cautious in our near-term outlook. Based on this, comparable store sales growth is assumed to be in the range of 1% to 3%, on top of a 4.9% comparable store sales increase in the fourth quarter of 2011. On a GAAP basis, and using the anticipated effective tax rate of 32.9%, GAAP net income for the fourth quarter is expected to be in the range of $9.3 million to $10.3 million, or $0.33 to $0.36 per diluted share, and assumes a diluted share count of 28.2 million shares, compared to 20.5 million diluted shares in the fourth quarter of last year. The Company’s 2012 fourth quarter includes one additional week compared to last year, and our 2012 fiscal year is a 53-week year compared to a 52-week fiscal 2011.
On an adjusted basis, using an anticipated on-going effective tax rate of 40%, adjusted net income in the fourth quarter is expected to be in the range of $8.4 million to $9.2 million, or $0.30 to $0.33 per diluted share.
Fiscal Year 2012 OutlookThe Company has revised its earnings per diluted share outlook to reflect fourth quarter guidance. The Company now expects comparable store sales growth in the range of 2.5% to 3.5% for fiscal 2012, on a 52-week vs. 52-week basis. On a GAAP basis, and using an anticipated full year effective tax rate of 32.9%, net income for fiscal year 2012 is expected to be in the range of $0.90 to $0.93 per diluted share, and assumes a diluted share count of 26.1 million shares, compared to 20.5 million diluted shares for the full year 2011.