Value apparel retailer Body Central has today (15 January) lowered its fourth-quarter guidance after reporting disappointing sales results during the period.

Net revenues edged up 0.4% to US$81m for the quarter to 29 December, compared to $80.7m the same period the prior year. Comparable store sales were down 11.6%.

Full-year revenues climbed 4.9% to $311m from $296.5m the same period a year ago.

As a result, the company now forecasts fourth-quarter diluted earnings per share to be in the range of $0.10 to $0.12, compared to previous guidance of $0.19-0.22.

For the full year, Body Central expects diluted earnings per share to range from $0.68 to $0.70 against earlier forecasts of between $0.80 and $0.83. This includes a $600,000 pre-tax charge taken in the third quarter related to severance expense for the former CEO.

Interim CEO, COO and CFO Tom Stoltz said: "We are disappointed in our recent results as sales trends did not improve from the third quarter. We were more promotional than planned during December in response to the competitive environment which resulted in weaker merchandise margins.

"While we believe that our current initiatives will have a positive impact on the business, we now anticipate that it will be later in 2013 before they have a meaningful impact on our performance."

Show the press release

 

Body Central Corp. Announces Fourth Quarter 2012 Sales Results and Revises Guidance

 

 

JACKSONVILLE, Fla., Jan. 15, 2013 (GLOBE NEWSWIRE) -- Body Central Corp. (Nasdaq:BODY) today announced sales results for the fourth quarter and fiscal year ended December 29, 2012 and lowered guidance for fourth quarter 2012 results.

Sales results for the fourth quarter ended December 29, 2012:

  • Net revenues for the quarter increased 0.4% to $81.0 million, compared to $80.7 million for the fourth quarter of 2011.
  • Store sales increased 1.2% to $73.8 million. Comparable store sales decreased 11.6%.
  • Based on sales results in the fourth quarter, the Company now expects fourth quarter diluted EPS to be in the range of $0.10 to $0.12 per share.
  • The Company opened 13 stores in the quarter and operated 276 stores as of December 29, 2012.

Sales results for the fifty-two weeks ended December 29, 2012:

  • Net revenues increased 4.9% to $311.0 million from $296.5 million for the same period a year ago.
  • Store sales rose 5.1% to $275.1 million driven primarily by a 15% increase in store count offset by a comparable store sales decrease of 8.1%.
  • The Company now expects full year diluted EPS to be in the range of $0.68 to $0.70 per share. Also included in the full year EPS estimate is the $600,000 pre-tax charge (or $0.02 per share) taken in the third quarter related to severance expense for the former CEO.

Tom Stoltz, Body Central's interim CEO, COO, and CFO, stated: "We are disappointed in our recent results as sales trends did not improve from the third quarter. We were more promotional than planned during December in response to the competitive environment which resulted in weaker merchandise margins. While we believe that our current initiatives will have a positive impact on the business, we now anticipate that it will be later in 2013 before they have a meaningful impact on our performance."

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

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 December 29, 2012 the Company operated 276 specialty apparel stores in 26 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=733545