The El Segundo, Calif., retailer made $7.8 million, or 34 cents a share, for the quarter ended Oct. 1, up from the year-ago $7.2 million, or 32 cents a share. Revenue rose 8% from a year ago to $223 million, as same-store sales rose 3.8%.
Analysts surveyed by Thomson Financial were looking for a 34-cent profit on sales of $223 million.
The company said it expects to make 34 to 40 cents a share for the fourth quarter, against a 40-cent Wall Street estimate. Fourth quarter earnings guidance, compared to the same period last year, reflects the unfavorable impact of the recording of co-op advertising cost reimbursements from vendors for fiscal 2006 earlier in the year, as well as a significantly lower benefit from inventory cost capitalization than the Company experienced in the fourth quarter of fiscal 2005.
Shares fell $1.36 to $22.70.