Depreciation expense, as a percentage of net sales, increased 25 basis points for the three months ended December 31, 2012 compared to the prior year period. The increase as a percentage of net sales was primarily due the capital spend associated with the 20 new stores opened during the past 12 months and the deleveraging effect of the net sales decline.
Our effective income tax rate for the three months ended December 31, 2012 increased to 39.1% from 37.8% in the comparable prior year period. The increase in the effective income tax rate is primarily the result of federal income tax credits recognized in fiscal 2012 under the Hiring Incentives to Restore Employment Act of 2010. These credits are no longer available in fiscal 2013.
Consistent with the Company’s pre-release on January 14, 2013, the Company expects net income per diluted share will be within a range of $0.70 to $0.80 for fiscal 2013.Included in the Company’s guidance, are the following annual assumptions:
- fiscal 2013 comparable store sales of negative 8.5% to negative 7.5%
- fiscal 2013 net sales increase of flat to 1%
- net capital expenditures of approximately $45 million
- the impact of fiscal year to date share repurchases of 3.6 million shares at a cost of $30.0 million
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