Interviews
News Flash
Specialty retailer Tween Brands Comparable store sales rise
23 Nov '07
4 min read
Tween Brands Inc reported its operating results for the third quarter that began August 5, 2007 and ended November 3, 2007. As compared to the results for the third quarter 2006 that began July 30, 2006 and ended October 28, 2006:
• Net sales increased 13% to $260.9 million from $230.5 million, attributable to an increase of 123 stores and a 4% comparable store sales increase;
• Comparable store sales increased 4%, composed of a 17% increase for Justice and a 1% increase for Limited Too. Comparable store sales for the quarter were driven by a strong August in both brands, primarily attributable to the shift in back to school dates, followed by negative comparable store sales at Limited Too in September and October;
• As expected, gross income as a rate of sales declined 410 basis points primarily due to Limited Too's recognition of a higher proportion of planned seasonal markdowns and higher buying and occupancy costs;
• Store operating, general and administrative expenses as a rate of sales increased 60 basis points principally related to Limited Too's higher store and direct-to-customer expenses;
• Net income for the 2007 quarter was $13.0 million, or $0.46 per diluted share, within the range of the company's previous guidance. Tween Brands reported net income of $19.0 million, or $0.58 per diluted share for the 2006 period; and
• Total inventories at the end of the 2007 quarter were down 3% per square foot at cost compared to inventories at the end of the 2006 period, while in-store inventories were down 8% per square foot at cost, favorable to the company's previous guidance. The difference is attributable to increases in non-store inventories primarily from directly sourced inventory in-transit and Limited Too e-commerce inventory.
Share Repurchase:
During the third quarter, Tween Brands repurchased $175 million of its common shares. Of this amount, approximately $143.3 million was reacquired under a previously disclosed accelerated share repurchase program. An additional $31.7 million was reacquired under the same authorization approved by the Board of Directors in September 2007. The company still has $148.3 million remaining under a separate authorization approved by the Board in May 2007.
• Net sales increased 13% to $260.9 million from $230.5 million, attributable to an increase of 123 stores and a 4% comparable store sales increase;
• Comparable store sales increased 4%, composed of a 17% increase for Justice and a 1% increase for Limited Too. Comparable store sales for the quarter were driven by a strong August in both brands, primarily attributable to the shift in back to school dates, followed by negative comparable store sales at Limited Too in September and October;
• As expected, gross income as a rate of sales declined 410 basis points primarily due to Limited Too's recognition of a higher proportion of planned seasonal markdowns and higher buying and occupancy costs;
• Store operating, general and administrative expenses as a rate of sales increased 60 basis points principally related to Limited Too's higher store and direct-to-customer expenses;
• Net income for the 2007 quarter was $13.0 million, or $0.46 per diluted share, within the range of the company's previous guidance. Tween Brands reported net income of $19.0 million, or $0.58 per diluted share for the 2006 period; and
• Total inventories at the end of the 2007 quarter were down 3% per square foot at cost compared to inventories at the end of the 2006 period, while in-store inventories were down 8% per square foot at cost, favorable to the company's previous guidance. The difference is attributable to increases in non-store inventories primarily from directly sourced inventory in-transit and Limited Too e-commerce inventory.
Share Repurchase:
During the third quarter, Tween Brands repurchased $175 million of its common shares. Of this amount, approximately $143.3 million was reacquired under a previously disclosed accelerated share repurchase program. An additional $31.7 million was reacquired under the same authorization approved by the Board of Directors in September 2007. The company still has $148.3 million remaining under a separate authorization approved by the Board in May 2007.
Popular News
Leave your Comments
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
