On a preliminary unaudited basis for the Fourth Quarter, the 13-weeks ended December 29, 2012:
- Consolidated comparable store sales are expected to decline 1.7%, representing a marked improvement from the 11.1% decline in third quarter fiscal 2012;
- Comparable store sales in North America are expected to increase 1.5% and decline 11.4% in Europe;
- Consolidated e-commerce sales are expected to increase 14.0%, excluding the impact of foreign exchange;
- The six stores that feature the Company’s newly imagined store design are expected to report an average 30% increase in sales in the fourth quarter of 2012 from the fourth quarter of 2011; and
- The Company noted that it strategically increased investment in SG&A to support its long term growth strategies and that it expects a reduction in its UK performance versus the 2011 fourth quarter. This combined with anticipated nonrecurring charges are expected to have a significant negative impact on fourth quarter profitability.
- Inventory at year end is expected to decline from the prior year end on an average square foot basis; and
- Cash at year end is expected to approximate $45 million.