Results for the Forty-Eight Weeks Ended January 28, 2012
- Net sales totaled $412.8 million and same store sales decreased 5%, compared to the same forty-eight week period last year.
- Operating loss totaled $71.8 million and included $21.2 million, or $0.59 per share, of non-cash store asset impairment and restructuring charges. In the third quarter, the Company recorded non-cash asset impairment charges of $11.4 million related to 103 stores identified for closure and other stores the Company will continue to operate. Restructuring charges totaled $9.8 million, including approximately $8.3 million related to accrued lease termination liabilities associated with stores identified for closure as part of the Company’s real estate restructuring efforts. The Company also recorded approximately $1.2 million of severance charges related to terminations at its corporate office and in the Company’s field organization in the third and fourth quarters. In addition, the Company recorded approximately $0.3 million of other miscellaneous store closing costs.
- Net loss for the forty-eight week period totaled $71.1 million, or ($2.00) per share, including the $0.59 per share for the restructuring and non-cash asset impairment charges mentioned above, and an effective tax rate of 0.5%, which is significantly lower than the statutory rate due to the Company’s maintenance of a full valuation allowance against its deferred tax assets.