Too Inc. Profit Surges

The specialty retailer easily beats third-quarter expectations as net more than doubles.

Author:: TSC Staff
Publish date:: Nov 17, 2004 9:05 AM EST

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Too Inc.

jumped early Wednesday after the specialty clothing company said its profit more than doubled in the third quarter, thanks partly to a strong back-to-school sales period.

Net income for the third quarter ended Oct. 30 rose to $11.4 million, or 33 cents per share, from $4.5 million, or 13 cents a share, a year earlier. Analysts expected 27 cents a share, according to Thomson First Call.

Revenue rose 20% to $174.9 million, while same-store sales jumped 11%.

Too said "merchandise improvement, along with closely managed inventories, allowed us to be much less promotional than last year and to achieve a greatly reduced markdown rate."

The company, which caters to young girls, said it was comfortable with analysts' consensus forecast of 63 cents a share for the fourth quarter.

Shares were trading at $24.10 in the premarket, a gain of $1.49, or 6.59%.