Financial Results for the Fourth Quarter Ended June 30, 2012

Gross Profit – Gross profit increased $0.9 million, or 1.2%, to $73.5 million for the fourth quarter ended June 30, 2012 compared to the $72.6 million in gross profit reported in the same quarter last year. As a percentage of net sales, gross profit increased slightly to 37.4% compared to 37.3% in the corresponding period in fiscal 2011.

Selling, General and Administrative Expenses: SG&A for the quarter ended June 30, 2012 was $77.0 million versus $74.2 million in the same quarter last year. As a percentage of net sales, SG&A increased to 39.2% in the fourth quarter of fiscal 2012 from 38.1% in the same quarter last year. SG&A includes $2.7 million in costs associated with the departure of our former CEO. Excluding these costs, SG&A as a percentage of net sales decreased to 37.8% as compared to 38.1% in the same quarter last year. On a per store basis, adjusted SG&A, which excludes the aforementioned costs, increased by 1.1%.

Financial Results for the Fiscal Year Ended June 30, 2012

Gross Profit – Gross profit for fiscal 2012 was $308.9 million compared to $313.3 million reported for fiscal 2011. As a percentage of net sales, gross profit decreased to 38.0% for the fiscal year ended June 30, 2012 compared to 38.2% in fiscal 2011.

SG&A – SG&A for the fiscal year ended June 30, 2012 was $301.4 million versus $295.3 million for the fiscal 2011. As a percentage of net sales, SG&A increased to 37.1% in the fiscal year ended June 30, 2012 from 36.0% in fiscal 2011. Excluding the $2.7 million in costs associated with the departure of our former CEO, SG&A was $298.8 million or 36.8% of sales for fiscal 2012. On a per store basis, adjusted SG&A, which excludes the aforementioned costs, increased by 2.2% this fiscal year versus last fiscal year. This increase was primarily due to the decline in expense leverage from lower sales volume and higher rent expense from increased square footage in certain new and relocated stores.

Balance Sheet

Inventory was $265.6 million at June 30, 2012 compared to $264.4 million at June 30, 2011, an increase of 0.5% due to the timing of new receipts late in the fourth quarter. On a per store basis, inventory increased 1.5% compared to last year. Net property and equipment was $75.8 million at June 30, 2012, a decrease of $1.2 million compared to June 30, 2011. 

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