US: Rue21 lifts FY outlook, sees holiday momentum
- Q3 profit fell 6.6% to $8.2m
- Sales up 15.6% to $225.2m
- Gross margin improved to 37.8%
- Company raised FY earnings guidance to $1.83 to $1.86
The teen apparel retailer has lifted its full-year adjusted earnings per share to range from $1.83 to $1.86
Teen apparel retailer Rue21 has lifted its full-year earnings guidance after achieving record sales gains over the Thanksgiving holiday weekend.
Net income slipped 6.6% to US$8.2m for the 13 weeks to 27 October, compared to $8.7m the same period last year. However, stripping out an expected $2.9m pre-tax litigation expense to settle wage claims in California, adjusted net income for the quarter was $10.0m.
Sales rose 15.6% to $225.2m, compared to $194.8m the same period last year. The company, which opened 29 stores during the quarter, said the increase was driven by the addition of new stores and comparable store sales growth of 0.2%.
Gross margin improved to 37.8%, compared to 36.7% the prior year.
President and CEO Bob Fisch said: "We executed our plan for the third quarter and continued our history of quality top and bottom line earnings growth, highlighted by a record third quarter gross margin.
"We achieved solid comp store sales growth above our plan in the junior's sportswear division, which is our largest category and will benefit the overall business going forward."
The company now expects full-year adjusted earnings per share to range from $1.83 to $1.86, compared to previous guidance of $1.80 to $1.85.
Fisch continued: "We are very focused on achieving our results for the fourth quarter and we were excited by the record sales gains we achieved over the Thanksgiving holiday weekend without increasing our promotional cadence from last year.
"We have great momentum going into December in addition to strong opportunities and initiatives that we believe will bring us a very happy holiday season and position us well for 2013."
- Improved supplier capabilities benefit Next
- China and Vietnam lead US apparel imports in July
- THE FLANARANT: Understand win-win or lose out
- Next H1: What the analysts say
- Abercrombie & Fitch to lose logos in fashion focus
- Brandix selects first "game-changing" innovations
- Bagir to invest in Ethiopia as H1 loss deepens
- TPP talks "make progress" but issues remain
- US cotton production set to decline
- Hanesbrands axes Costa Rican jobs in Vietnam move
- Wool in the 21st Century: new prospects for a familiar fibre
- Apparel Market in China to 2018 - Market Size, Trends, and Forecasts
- Global market review of denim and jeanswear – forecasts to 2020
- Global Database of the Top 1000 Apparel Producers - Company Names, Financial Performance, Key Executives, and Contact Details
- Global Database of the Top 1000 Cut and Sew Apparel Producers - Company Names, Financial Performance, Key Executives, and Contact Details