Under the cost method, the Company reported net income of $19.1 million and earnings per diluted share of $0.80 for the fourteen weeks ended February 2, 2013, compared to adjusted net income of $23.3 million and adjusted earnings per diluted share of $0.93 for the thirteen weeks ended January 28, 2012. For the fifty-three weeks ended February 2, 2013, the Company reported net income of $63.2 million and earnings per diluted share of $2.61, compared to adjusted net income of $74.3 million and adjusted earnings per diluted share of $2.90 for the 52-week period ended January 28, 2012.

Under the retail method, the Company reported net income of $22.1 million and earnings per diluted share of $0.93 for the fourteen weeks ended February 2, 2013, compared to net income of $24.2 million and earnings per diluted share of $0.97 in the thirteen weeks ended January 28, 2012. For the fifty-three weeks ended February 2, 2013, the Company reported net income of $62.7 million and earnings per diluted share of $2.58, compared to net income of $77.2 million and earnings per diluted share of $3.01 for the fifty-two weeks ended January 28, 2012.

The results reported above include transactions that the Company believes are not indicative of the performance of its core business. The following table also shows Non-GAAP earnings per diluted share under the retail method excluding such transactions for the fiscal quarters and fiscal years ended February 2, 2013 and January 28, 2012.
  Fourth Quarter Fiscal Year
  2012 2011 2012 2011
Earnings per diluted share under the cost method on a GAAP basis $0.80 $0.93 $2.61 $2.90
Impact of the change in method of accounting for inventory $0.13 $0.04 -$0.03 $0.11
Earnings per diluted share under the retail method  $0.93 $0.97 $2.58 $3.01
Add back: Accelerated depreciation for DC closures and remodels; restructuring and other costs  $0.22 $0.03 $0.65 $0.03
Remove: Settlement of state tax audits; reversal of prior year's US tax accrual on foreign earnings  - -$0.13 - -$0.12
Non-GAAP earnings per diluted share under the retail method $1.15 $0.87 $3.23 $2.92

2012 Results Reported under the Retail Method

Fourth Quarter 2012
  • Net sales, which included $21.6 million of sales in the 53 rd week, increased 11.3% to $509.2 million, compared to $457.5 million the prior year.
  • Comparable retail sales, which excluded the 53 rd week, increased 4.3% compared to the prior year.
  • Gross profit increased 17.5% to $192.7 million, and increased 200 basis points to 37.8% of sales.
  • Selling, general and administrative expense increased 12.4% to $136.1 million, and deleveraged 20 basis points to 26.7% of sales.
  • Non-GAAP operating income increased 64.8% to $38.7 million, and increased 250 basis points to 7.6% of sales.
  • Non-GAAP net income was $27.3 million, a 24.8% increase compared to the prior year.
  • Non-GAAP EPS of $1.15 per diluted share compares to $0.87 last year, a 32.2% increase.

Fiscal 2012 Results
  • Net sales, which included the 53 rd week, increased 5.5% to $1,809.5, compared to $1,715.9 million the prior year.
  • Comparable retail sales, which excluded the 53 rd week, increased 2.0% compared to the prior year.
  • Gross profit increased 4.0% to $690.5 million, and deleveraged 50 basis points to 38.2% of sales.
  • Non-GAAP selling, general and administrative expense increased 6.2% to $507.0 million, and deleveraged 20 basis points to 28.0% of sales.
  • Non-GAAP operating income increased 3.0% to $114.3 million, and deleveraged 20 basis points to 6.3% of sales.
  • Non-GAAP net income was $78.3 million, a 4.5% increase compared to prior year.
  • Non-GAAP EPS of $3.23 per diluted share compares to $2.92 last year, a 10.6% increase.

Store Openings and Closures

The Company opened four stores and closed 11 during the fourth quarter of 2012. During fiscal 2012, the Company opened 64 stores and closed 18, ending the year with 1,095 stores.

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