The Company also announced the board of directors authorized a $100 million share repurchase program.
- Net sales increased 17% to $89.6 million
- Comparable sales decreased 1%
- Diluted earnings per share increased 18% to $0.33
- Board authorized a $100 million share repurchase program
SECOND QUARTER SUMMARY
Net sales for the thirteen weeks increased 17% to $89.6 million driven by 79 new boutique openings since the prior year quarter. Performance was strongest in jewelry, outpacing increases in accessories and apparel, and a decline in gifts.
Comparable sales, including direct-to-consumer sales, decreased 1%, as compared to a 21% increase in the prior year quarter. Comparable transactions decreased 4%, offset by a 3% increase in average transaction size.
Direct-to-consumer sales increased 92% versus the prior year quarter driven by increases in site traffic, conversion rates, and average transaction values. Comparable sales, excluding direct-to-consumer sales, decreased 3% versus the prior year quarter.
Gross profit, as a percentage of net sales, was 53.3% compared to 54.8% in the prior year quarter, resulting from lower merchandise margins due to higher levels of promotions compared to the prior year quarter and deleveraging of fixed occupancy costs.
Selling, general and administrative expenses increased 13% to $23.7 million from $20.9 million in the prior year quarter. Selling expenses increased by $2.7 million due to the increase in the number of boutiques in operation in the second quarter as compared to prior year quarter.
General and administrative expenses were flat when compared to the prior year. As a percentage of net sales, selling, general and administrative expense decreased 100 basis points to 26.4% compared to 27.4% in the prior year quarter.
Income from operations for the quarter increased 15% to $24.1 million or 26.9% of net sales compared to $20.9 million or 27.3% of net sales in the prior year quarter.
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