This improvement in SG&A rate reflected substantially higher net sales and continued aggressive management of expenses, partially offset by costs associated with the Company's accelerated factory outlet strategy and an increase in variable costs associated with higher sales versus the 2010 period.
During the third quarter of 2011, the Company did not incur any pre-tax restructuring charges, but did record pre-tax restructuring charges of $0.6 million in the third quarter of 2010. On an after-tax basis, these third quarter 2010 charges totaled $0.3 million, or approximately $0.01 per diluted share.
The Company reported operating income of $54.7 million in the third quarter of 2011, an increase of 34.0% compared with operating income of $40.8 million in the third quarter of 2010. Net income was $32.3 million in the third quarter of 2011, an increase of 33.4% versus the $24.2 million reported in the third quarter of 2010. Diluted earnings per share were $0.61, an increase of 48.8% compared to the $0.41 per diluted share reported in the third quarter of 2010.
The Company ended the quarter with approximately $140 million in cash and cash equivalents.
Total inventory per square foot, excluding e-commerce, at the end of the third quarter was up 11% versus year-ago, reflecting increases of approximately 8% at Ann Taylor stores, 13% at LOFT stores and 10% in the factory outlet channel.
During the third quarter of 2011, the Company opened six new Ann Taylor stores, four new LOFT stores and two new LOFT Outlet stores. The Company also closed two Ann Taylor stores and two LOFT stores. The total store count at the end of the third quarter was 950, comprised of 276 Ann Taylor stores, 97 Ann Taylor Factory stores, 503 LOFT stores, and 74 LOFT Outlet stores.
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.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
