The Company's effective income tax rate decreased to 34.4% primarily due to higher tax-exempt interest and tax credits.
During 2007, the Company returned $20.3 million in dividends to shareholders. The Company's annualized dividend of $.66 per share increased 10% in 2007, and represents a yield of over 4% at current price levels. The Company also repurchased 3.2 million shares of its common stock during the year and has approximately 400,000 shares remaining in a repurchase authorization.
For the fiscal year ended February 2, 2008, the Company opened 62 stores, relocated 18 stores and closed 20 stores.
2008 OUTLOOK: The Company expects 2008 to continue to be a difficult environment for retail. Although the Company feels its current inventory position is fresh and in line with current sales expectations, the gross margin rate is expected to be flat with 2007. The Company estimates 2008 comparable store sales in a range of down 3% to flat and that net income will be in a range of $21.0 million to $27.0 million. The Company estimates earnings per diluted share will be in a range of $0.72 to $0.93, a decrease of 30% to 10% from last year.
The Company estimates first quarter net income to be in a range of $14.4 million to $16.2 million, or $0.49 to $0.55 per diluted share, a decrease of 17% to 7%. This estimate is based on comparable store sales of down 3% to flat.
The 2008 net income estimates also reflect the following items: • The Company expects to open 75 new stores during the year. The expected store openings include 30 new stores of an expanded version of the Company's It's Fashion division stores. The expanded store, operating under the name It's Fashion Metro, currently has six stores open and is a value-priced fashion format offering the latest styles for the entire family including urban-inspired, nationally recognized brands at everyday low prices. The Company's net income estimate reflects the impact of closing 32 stores by year-end including the conversion of eight existing It's Fashion stores to the It's Fashion Metro format, which are included in the 30 new stores mentioned above. At this time, only four specific stores have been identified for closure. • Capital expenditures are projected to be $19 million, including $14 million for store development. • Depreciation is expected to be approximately $24 million for the year. • The effective tax rate is expected to be approximately 35.3%.
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.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
