Body Central Corp. Announces Second Quarter 2012 Financial Results

Revises Guidance for Remainder of 2012

JACKSONVILLE, Fla., Aug. 2, 2012 (GLOBE NEWSWIRE) -- Body Central Corp. (Nasdaq:BODY) today announced financial results for the second quarter of 2012 and revised guidance for the reminder of the year.

Summary results for the thirteen weeks ended June 30, 2012:

• Net revenues for the quarter increased 6.3% to $79.4 million, compared to $74.7 million for the second quarter of fiscal 2011.
• Store sales rose 5.9% to $68.3 million due to net store unit growth of 16.3%, offset by a comparable-store sales decrease of 7.6%.
• Direct sales rose by 9.0% to $11.0 million from $10.1 million in the second quarter of fiscal 2011.
• Income from operations was $5.5 million as compared to $8.1 million in the second quarter of fiscal 2011. Income from operations as a percentage of net revenues decreased to 6.9% from 10.8% due to increased markdowns and negative comparable store sales in the second quarter of fiscal 2012.
• Net income was $3.4 million, or $0.21 per diluted share based on 16.4 million weighted-average shares outstanding as compared to net income of $5.3 million, or $0.33 per diluted share based on 16.2 million weighted-average shares outstanding in the second quarter of fiscal 2011.
• The Company opened 15 new stores and closed 1 store during the second quarter and operated 257 stores as of June 30, 2012.

Summary results for the twenty-six weeks ended June 30, 2012:

• Net revenues for the first half of fiscal year 2012 increased 9.0% to $162.0 million, compared to $148.7 million for the first half of fiscal 2011.
• Store sales rose 8.9% to $139.3 million due to net store unit growth of 16.3%, offset by a comparable-store sales decrease of 4.5%.
• Direct sales rose by 9.5% to $22.8 million from $20.8 million in the first half of fiscal 2011.
• Income from operations was $15.0 million as compared to $16.9 million in the first half of 2011. Income from operations as a percentage of net revenues decreased to 9.3% from 11.4% due to increased markdowns and negative comparable sales in the first half of fiscal 2012.
• Net income was $9.4 million, or $0.57 per diluted share based on 16.4 million weighted-average shares outstanding as compared to net income of $10.7 million, or $0.66 per diluted share based on 16.1 million weighted-average shares outstanding in the first half of fiscal 2011.
• The Company opened 19 new stores and closed 3 stores during the first half of fiscal 2012.

Allen Weinstein, Body Central's President and CEO, stated: "Our second quarter sales and earnings were in line with our revised guidance. We believe that the shortfall in our retail business was due not only to our own missteps but also to the challenging retail environment. During the second quarter, we have reduced spring and summer inventory levels, began to flow fall merchandise into our stores, continued our test and reorder process and better-aligned inventory levels with sales expectations. Our direct business has had solid gains and we continue to make progress on executing several company-wide merchandising and operating initiatives. However, based on July sales trends and limited visibility for the remainder of the quarter, we have lowered our guidance for the second half of 2012."

Balance Sheet highlights as of June 30, 2012:

Cash, cash equivalents and short-term investments were $42.0 million at the end of the second quarter compared to $29.2 million in the second quarter of the prior year.

The Company continues to have no long-term debt.

Inventories at the end of the second quarter were $18.1 million in both the second quarter of fiscal 2012 and 2011. On an average store basis, inventory values were down 7.8% from second quarter fiscal 2011 levels.

Reported results are preliminary and remain subject to adjustment until the filing of our Form 10-Q with the SEC.

Outlook

For the third quarter of fiscal 2012, the Company now expects comparable sales to decrease 12 to 14 percent, net revenues in the range of $68 million to $70 million and diluted earnings per share in the range of $0.02 to $0.04, based on diluted weighted-average shares outstanding of 16.4 million.

For the full fiscal year, the Company now expects comparable sales to decrease 8 to 10 percent, net revenues will be in the range of $314 million to $317 million and diluted earnings per share in the range of $0.80 to $0.83, based on diluted weighted-average shares outstanding of 16.4 million.

Conference Call Information

A conference call to discuss second quarter financial results is scheduled for today, August 2, 2012, at 4:30 PM Eastern Time. The conference call will also be webcast live at www.bodyc.com. To access the replay of this call, please dial (877) 870-5176 and enter pin number 2407448. The replay is available until August 16, 2012. A replay of this call will also be available on the Investor Relations section of the Company's website, www.bodyc.com, within two hours of the conclusion of the call and will remain on the website for ninety days.

About Body Central

Founded in 1972, Body Central Corp. is a growing, multi-channel, specialty retailer offering on-trend, quality apparel and accessories at value prices. As of August 2, 2012 the Company operated 258 specialty apparel stores in 24 states under the Body Central and Body Shop banners, as well as a direct business comprised of a Body Central catalog and an e-commerce website at www.bodyc.com. The Company targets women in their late teens and twenties from diverse cultural backgrounds who seek the latest fashions and a flattering fit. Stores feature an assortment of tops, dresses, bottoms, jewelry, accessories and shoes sold primarily under the Company's exclusive Body Central^® and Lipstick^® labels.

Original source: http://investor.bodyc.com/releasedetail.cfm?ReleaseID=697780