Net sales increased 4% to $951.4 million for the quarter, compared to net sales of $916.8 million for the fiscal quarter ended July 30, 2011. Total US sales, including direct-to-consumer sales, decreased 5% to $648.0 million. Total international sales, including direct-to-consumer sales, increased 31% to $303.4 million. Total Company direct-to-consumer sales, including shipping and handling, increased 25% to $127.7 million.
Comparable store sales for the quarter were down 10% relative to last year. Comparable store sales were down 5% in US stores and were down 26% in international stores. Within the quarter, comparable store sales were weakest in June.
The Company expects gross margin rate erosion for the second quarter of approximately 100 basis points versus last year. Additionally, the Company expects inventory at cost to be up approximately 20% at the end of the second quarter versus a year ago.
The Company expects to report diluted earnings per share for the quarter of approximately $0.15 to $0.18.
Based on a lower sales trend than previously projected, the Company now expects full year diluted earnings per share of approximately $2.50 to $2.75. This projection assumes same store sales to be down 10% for the second half of the year, consistent with the second quarter trend. The Company continues to expect substantial recovery of the gross margin rate erosion seen in 2011 on a 2012 full year basis.
In addition to lower sales, the reduction in projected earnings per share also reflects the impact of a stronger US dollar and the impact of an increase in the effective tax rate primarily as a result of a reduced benefit related to international operations taxed at a lower rate. The Company now expects the tax rate for the year as a whole to be in the high 30's.
The Company will provide additional details on second quarter results and fiscal 2012 expectations during its earnings call on August 15, 2012. In addition, the Company will provide a strategic update on its international expansion plans, capital allocation plans, and its initiatives to increase domestic store profitability, as well as additional information on productivity, profitability and return on invested capital metrics related to the Company's international operations.
The Company anticipates that the strategic update will include:
Textiles | On 27th Oct 2016
Teijin Frontier Co. Ltd, fibre products converting company and part...
Textiles | On 27th Oct 2016
Industry experts, researchers and military officials discussed the...
'Natural fibres are appreciated for traditional authenticity'
Narayan Tex Fab
I find it hard to find professionals in Surat
Sedo Treepoint GmbH
We see a higher demand in colour management systems, as customers see big...
Iago Castro Asensio
RCfil Distribuciones S.L.
Iago Castro Asensio, International Business Manager of RCfil...
Swerea IVF AB
Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...
The Indian market has huge potential in technical textiles, and by far,...
Sonam and Paras Modi's Sva Couture is synonymous with head-turning...
Gildan Activewear SRL
Gildan Activewear, a manufacturer and marketer of branded clothing and...
"You have to truly understand what your client wants, know her needs, what ...
Apparel/Garments | On 26th Oct 2016