Body Central reports net revenue growth of 22%

29 Aug '11

4 min read

Body Central Corp. announced financial results for the second quarter ended July 2, 2011.

Highlights for the 13 weeks ended July 2, 2011:

• Net revenues for the second quarter increased 22.1% to $74.7 million, compared to $61.2 million for the second quarter of 2010.
• Store sales rose 29.0% to $64.6 million driven by a comparable-store sales increase of 14.7% and net store unit growth of 11%.
• Operating margin increased to 10.8% of net revenues. This compares to an operating margin of 7.6% for the same period last year.
• Net income was $5.3 million, or $0.33 per diluted share based upon 16.2 million weighted average shares outstanding, compared to net income of $2.3 million or $0.19 per diluted share based upon 12.6 million weighted average shares outstanding for the second quarter of 2010.
• The Company opened 7 new stores during the second quarter and operated 221 stores as of July 2, 2011.

Allen Weinstein, Body Central's President and CEO, stated: "Our strong second quarter results reflect continued execution of our strategic plan. We delivered on-trend fashion at value prices which enabled us to achieve 15% comparable stores sales growth. New stores continue to perform ahead of our expectations. Looking ahead, we remain focused on expanding our store base, driving comparable store sales growth, growing our direct business and making further progress on key operating initiatives which we believe will enable us to achieve our long term sales and earnings growth objectives."

Highlights for the twenty-six weeks ended July 2, 2011:

• Net revenues increased 24.6% to $148.7 million from $119.3 million for the same period a year ago.
• Store sales rose 29.6% to $127.9 million and comparable-store sales increased 15.4% from the same period in 2010.
• Operating margin increased to 11.4% of net revenues from 9.1% of net revenues for the same prior last year.
• Diluted earnings per share were $0.66 on net income of $10.7 million compared to diluted earnings per share of $0.46 on net income of $5.7 million for the comparable period in 2010.

Balance Sheet highlights as of July 2, 2011:
Cash and cash equivalents were $29.2 million at the end of the second quarter 2011 compared to $8.5 million at the end of the second quarter 2010.

Inventories at the end of the quarter were $18.1 million compared to $15.9 million at the end of the same period last year. On an average store basis, inventory increased approximately 3% in the second quarter.

Outlook:
For the third quarter of 2011, net revenues are expected to be in the range of $64 million to $66 million assuming a comparable store sales increase in the mid single digits. This compares to net revenues of $56.9 million in the third quarter of 2010. Net income is expected to be in the range of $2.4 million to $2.6 million and diluted earnings per share are expected to be in the range of $0.14 to $0.16 for the quarter. This assumes a tax rate of approximately 38.5% and 16.2 million weighted average shares outstanding. This compares to net income of $1.3 million or $0.11 per diluted share on 12.6 million weighted average shares outstanding in the third quarter of 2010.

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