The Company's fiscal 2012 is a 53-week year with the additional week falling in the fourth quarter compared to the traditional 52 weeks in fiscal 2011. Comparable premium retail store sales for the fourth quarter and full year of fiscal 2012 are presented on a 13-week and 52-week basis and exclude the additional week. The additional week in fourth quarter fiscal 2012 represented a loss of $0.13 per share;
The fourth quarter of fiscal 2012 included a charge, net of tax, of $0.06 per share associated with the Company's CEO transition;
Due to the change in the fair value of the derivative liability related to the Series A Preferred Stock, the Company recorded a gain of $0.05 per share in the fourth quarter of fiscal 2012, and a loss of $0.10 per share for the full year fiscal 2012;
During the fourth quarter of fiscal 2011, the Company recorded a favorable cumulative one-time adjustment for gift card breakage that represented $11.8 million, or $0.39 per share, in the fourth quarter 2011 and $0.47 per share in fiscal year 2011. In addition, the Company recorded a non-cash store impairment charge of $0.08 per share in the fourth quarter of fiscal 2011 and $0.21 per share in fiscal year 2011.
Fourth Quarter of Fiscal 2012 Operating Results
Consolidated net sales were $220.8 million, compared with $224.4 million in fourth quarter 2011, which included net sales of $11.8 million as a result of a favorable cumulative one-time adjustment for gift card breakage income. Net sales from the retail segment were $166.0 million, compared with $173.5 million in the same period last year.
Comparable premium retail store sales increased 2.7 percent. Net sales decreased due to store closures as a result of our store optimization program and the impact of $10.7 million in net sales from the cumulative one-time gift card breakage recorded in the fourth quarter 2011. Net sales from the direct segment were $54.7 million compared with $50.8 million in the same period last year, which included $1.1 million from the cumulative one-time adjustment for gift card breakage.
Consolidated gross profit was $64.1 million, or 29.1 percent of net sales, compared with $73.1 million, or 32.6 percent of net sales, for fourth quarter 2011. The 350 basis point decline in gross profit margin was primarily due to the 370 basis point benefit in the fourth quarter of fiscal 2011 resulting from the cumulative one-time adjustment for gift card breakage. Adjusting for this benefit, gross margin increased 20 basis points driven by leverage of buying and occupancy costs offset by lower merchandise margins.
Selling, general and administrative expenses (SG&A) were $82.5 million, or 37.4 percent of net sales, compared with $81.8 million, or 36.5 percent of net sales, for fourth quarter 2011. The increase in SG&A expense was driven by a $2.1 million pre-tax charge related to the CEO transition in the 2012 period offset by lower marketing expenses.
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