Net earnings from continuing operations for the year-to-date period ended January 1, 2011 were $2.0 million compared to $5.7 million in the prior year. Earnings per share from continuing operations for the year-to-date period ended January 1, 2011 was $0.02 per share on 84.5 million diluted shares outstanding, compared to earnings per share of $0.07 per share on 86.8 million diluted shares outstanding in the prior year.
Net loss from discontinued operations for the year-to-date period ended January 1, 2011 was $5.8 million or $0.07 per share on 84.5 million diluted shares outstanding, compared to a net loss of $7.4 million or $0.09 per share on 86.8 million diluted shares outstanding in the prior year.
During the quarter ended January 1, 2011, the Company opened 2 bebe stores. For the reminder of the year we anticipate opening 2 bebe stores including our first shop-in-shop in Japan, 3 2b stores, including 1 conversion of a PH8 location, and closing up to 7 bebe stores, including the accessory store in San Francisco, resulting in a 2% square footage decrease from fiscal year ended July 3, 2010.
For the year-to-date period the Company's capital expenditures were approximately $4.0 million and depreciation expense from continuing operations was approximately $11.0 million. Depreciation expenses for the year will be approximately $23 million.
For the third quarter of fiscal 2011, the Company currently anticipates comparable store sales in the negative mid-single digit range. Depending on actual sales and markdowns the net loss from continuing operations will be in the range of $0.02 – $0.06 per share based on 84 million weighted average shares outstanding versus a net loss from continuing operations of $0.01 per share based on 87 million weighted average shares outstanding in the third quarter of fiscal 2010.
The guidance assumes that we incur a similar reduction in gross margin due to the decrease in initial mark-up as experienced in the fiscal second quarter of 2011. The Company is currently anticipating an effective tax rate of 40.0% for fiscal 2011.
For the third quarter of fiscal 2011, the Company is currently planning finished goods inventory to increase in the range of mid to high teens on a per square foot basis compared to the decrease of 5.4% in the third quarter of fiscal 2010.