For the reported period, the company reported net income of $101.0 million, or $0.79 per diluted share, compared to net income of $91.2 million, or $0.69 per diluted share. Results for the fourth quarter include the favourable impact of the Tax Cuts and Jobs Act of 2017 of approximately $10 million after-tax, or $0.08 per diluted share, as well as the benefit of the 53rd week of approximately $4 million after-tax, or $0.03 per diluted share
For the fourth quarter, net sales were $587.8 million compared to $600.8 million in last year's fourth quarter. This decrease of 2.2 per cent reflected a comparable sales decline of 5.2 per cent, partially offset by the $29 million benefit of the 53rd week. The comparable sales decline consisted of lower average dollar sale and flat transaction count. The net sales for 2017 were $2.3 billion compared to $2.5 billion in fiscal 2016. This decrease of 7.8 per cent showed a comparable sales decline of 7.7 per cent, partially offset by the $29 million benefit of the 53rd week. The comparable sales decline consisted of lower average dollar sale and a decline in transaction count.
The fourth quarter effective tax rate was 4.4 per cent which included an approximate $10 million benefit resulting from the impact of US tax reform. Excluding the impact of US tax reform, the fourth quarter effective tax rate was 37.7 per cent compared to 35.4 per cent for last year's fourth quarter. The fiscal 2017 effective tax rate was 29.7 per cent. Excluding the impact of US tax reform, the fiscal 2017 effective tax rate was 36.4 per cent.
"Our fourth quarter results exceeded expectations and demonstrate clear progress in the execution of our strategic initiatives to drive improved performance and value creation. In 2017, we strengthened our brands' positioning, enhanced the customer experience, maintained financial discipline and built a solid foundation for our next stage of profitable growth. We are excited about our sales-driving initiatives for 2018, and we are confident in our continued success." said Shelley Broader, CEO and president.
For fiscal 2018, the company is anticipating a low single-digit decline in consolidated comparable sales with comparable sales performance stronger in the second half of the year compared to the first half. There is expectation of tax rate to be around 26-28 per cent. The rate includes the benefit of the new 21 per cent federal rate, partially offset by additional expenses due to changes in the deductibility of executive compensation and a lower benefit from state tax deductions. In addition, the company anticipates 2018 capital expenditures to be $70-$80 million, primarily driven by store reinvestments and technology enhancements. (RR)
Fibre2Fashion News Desk – India
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