Tween Brands Q4 profit falls 11% on charge

US: Tween Brands Q4 profit falls 11% on charge

By just-style.com | 20 February 2008

Girls' wear retailer Tween Brands Inc today (20 February) said its fourth quarter profit fell 11% as restructuring charges outweighed higher sales.

Net income for the three months to 2 February slipped to $25m, or $1.00 per share, from $28.2m or $0.86 per share a year earlier. The pretax restructuring charge was $0.11 per share.

Net sales for the quarter rose 16% to $315.8m, from $272.3m in last year's quarter.

Same-store sales increased 8%, with the Justice brand delivering a 29% increase and Limited Too a 3% increase. The company's e-commerce sales were up by 125%.

Commenting on the fourth quarter results, chairman and CEO Mike Rayden said the company "controlled our inventory, managed markdowns, and delivered better than expected operating income."

For the year, profit fell 19% to $52.6m, or $1.81 per share, from $64.8m, or $1.95 per share in the prior year.

The New Albany, Ohio, apparel retailer said sales for the year climbed 15% to a record $1.0bn, from $883.7m last year. Comparable store sales rose 4%.

The company said it expects fiscal first-quarter earnings of $0.35 to $0.40 a share and anticipates capital expenditures of $75m to $80m in 2008.

Separately, Tween Brands said senior vice president and chief financial officer Paul Carbone has resigned, but stressed his departure was not in any way related to a disagreement with, inaccuracies or omissions in its financial reporting and accounting systems.

A national search for a new chief financial officer is now underway, and president and chief operating officer Kenneth Stevens has assumed the role of principal financial officer in the interim.

The company operates 582 Limited Too stores and 261 Justice stores.

Sectors: Apparel, Finance, Retail

Companies: Tween Brands