For the fiscal 2012 second quarter, net sales increased to $226.6 million from net sales of $219.6 million for the second quarter of fiscal 2011. Same store sales increased 1.0% for the second quarter of 2012 versus the comparable period in the prior year.
As anticipated, second quarter sales were negatively affected by the calendar shift of the Fourth of July holiday further into the third quarter this year, which resulted in certain holiday-related sales moving from the second quarter to the third quarter.
Gross profit for the fiscal 2012 second quarter increased to $73.1 million from $71.8 million in the second quarter of the prior year. The Company's gross profit margin was 32.2% in the fiscal 2012 second quarter versus 32.7% in the second quarter of the prior year.
The decrease in gross profit margin reflects higher store occupancy and distribution costs, partially offset by an increase in merchandise margins of approximately 12 basis points. The improvement in merchandise margins was driven by a shift in the product sales mix and an adjustment in promotional activities, partially offset by the continuation of product cost inflation.
Selling and administrative expense as a percentage of net sales improved to 30.3% in the fiscal 2012 second quarter from 30.5% in the second quarter of the prior year. Overall selling and administrative expense increased $1.8 million during the quarter from the prior year due primarily to higher store-related expenses reflecting an increased store count and increased employee benefit-related costs, as well as a pre-tax charge of $0.7 million related to store closing costs.
These expenses were partially offset by lower advertising costs as well as lower debit card fees resulting from recent federal legislation. The Company recorded a non-cash pre-tax impairment charge of $0.2 million related to certain underperforming stores in the second quarter of fiscal 2012, compared to $0.6 million in the same period last year.
Net income for the second quarter of fiscal 2012 was $2.6 million, or $0.12 per diluted share, including $0.03 per diluted share of store closing and non-cash impairment charges. For the second quarter of fiscal 2011, net income was $3.1 million, or $0.14 per diluted share, including a non-cash impairment charge of $0.02 per diluted share.
For the 26-week period ended July 1, 2012, net sales increased to $445.1 million from net sales of $440.7 million in the 26 weeks ended July 3, 2011. Same store sales decreased 1.0% in the first 26 weeks of fiscal 2012 versus the comparable period last year. Net income was $2.7 million, or $0.13 per diluted share, including $0.03 of store closing and impairment charges, for the first 26 weeks of fiscal 2012, compared to net income of $5.9 million, or $0.27 per diluted share, including the $0.02 impairment charge, for the first half of last year.
Textiles | On 24th Oct 2016
Patanjali Ayurved, an enterprise initiated by yoga guru Baba Ramdev,...
Textiles | On 24th Oct 2016
German technology can play a major role making the environment...
Apparel/Garments | On 24th Oct 2016
Virtual fitting rooms meant to bridge the gap between e-commerce...
‘Blending cultures is the true beauty of fashion, where one’s imagination...
Hindoostan Innovation Centre
‘Modern technical textile is an indispensable tool for science and...
Mangalam Industries Pvt Ltd
‘The manufacturing sector is improving day-by-day, becoming better in...
Coating at a fibre level is a practice not usually seen in the...
Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...
Swerea IVF AB
Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...
Somaiya Kala Vidya
Among the many honours showered on Frater, including Fulbright and Ford...
Hyderabad-based designer Prathyusha Garimella is known for blending...
Gildan Activewear SRL
Gildan Activewear, a manufacturer and marketer of branded clothing and...
Apparel/Garments | On 21st Oct 2016