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Sales jump 18.9% at rue21 in Q1 FY'12
25
May '12
rue21, inc. announced its financial results for the first quarter ended April 28, 2012.

First Quarter Results:
• Net sales increased 18.9% to $205.6 million from $172.9 million. Comparable store sales for the quarter were up 1.7%, on top of a 5.2% increase for the first quarter of fiscal 2011.
• Gross margin was 38.8% compared to 38.9% in the first quarter of fiscal 2011.
• Selling, general and administrative expenses were $53.8 million or 26.2% of net sales, compared to $45.4 million or 26.2% of net sales.
• The Company opened 40 new stores and converted an additional 7 stores to the larger rue21 etc! format compared to opening 39 stores and converting 12 stores to the etc! format in the first quarter of fiscal 2011.
• Net income increased 20.6% to $11.6 million from $9.6 million.
• The Company generated $9.9 million in cash as compared to $5.5 million in the first quarter of 2011. Cash and short term investments were $81.8 million as of April 28, 2012.
• Diluted earnings per share were $0.46 compared to diluted earnings per share of $0.38 in the first quarter of fiscal 2011.

Bob Fisch, rue21's President and CEO, stated: "We were pleased to deliver strong results to our shareholders in the first quarter of fiscal 2012, and are looking forward to continuing our momentum into the second quarter and the remainder of the year.

“We believe rue is well positioned to capitalize on the current color and fashion trends in the industry. In addition to seeing comparable store sales increases on top of strong performance last year, our new stores continue to provide consistent and predictable sales and profit growth.

“Through our real estate expansion we are gaining market share in small and mid-size markets around the country, and we believe rue is rapidly becoming a favorite retail destination for both guys and girls who want the latest looks at every day great value."

Outlook:
For fiscal 2012, the Company is raising its prior guidance based on first quarter results and expects diluted earnings per share to be in the range of $1.76 to $1.81 versus its previous guidance of $1.74 to $1.79, and as compared to $1.55 in fiscal 2011.
This incorporates 25.4 million average diluted shares expected for fiscal 2012 as compared to 25.1 million average diluted shares in fiscal 2011.

For the second quarter of fiscal 2012, the Company currently expects low single digit comparable store sales. Diluted earnings per share for the second quarter are expected to be in the range of $0.32 to $0.34.

rue21 is a leading specialty apparel retailer offering exclusive branded merchandise and the newest trends at a great value. rue21 currently operates 809 stores in 46 states.

rue21 inc


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