Le Château Q2 net earnings up

09 Sep '08

2 min read

Le Château Inc reported that net earnings for the second quarter ended July 26, 2008 increased 55.6% to $9.8 million from $6.3 million for the second quarter ended July 28, 2007.

Earnings per share (basic) for the second quarter increased to $0.39 per share from $0.25 per share the previous year.

Earnings before interest, income taxes, depreciation and amortization (EBITDA) for the second quarter increased 18.4% to $18.7 million or 21.0% of sales, compared to $15.8 million or 18.9% of sales last year, resulting primarily from continued improvements in gross margins.

Sales for the second quarter increased 6.1% to $88.7 million from $83.6 million for the same period last year. Comparable store sales increased by 1.0% over the same period a year ago.

In June 2008, the Toronto Stock Exchange approved the Company's previously announced normal course issuer bid to purchase up to 925,148 Class A subordinate voting shares. Since June 19, 2008, the Company purchased 235,900 Class A subordinate voting shares at an average price of $12.70 per share for a total of $3.0 million.

Net earnings for the six-month period increased 47.6% to $15.5 million or $0.62 per share from $10.5 million or $0.42 per share the previous year.

Earnings before interest, income taxes, depreciation and amortization (EBITDA) for the first six months increased 19.2% to $31.0 million or 19.5% of sales, compared to $26.0 million or 16.9% of sales last year.

Sales rose 3.4% to $159.3 million for the six months ended July 26, 2008, compared to $154.0 million last year. Comparable store sales decreased 1.5% versus the same period a year ago.

During the first six months of the year, the Company opened nine new stores and expanded eight existing locations, resulting in the addition of 59,000 square feet or 6.1% to the Le Château network, bringing the total floor space at end of period to 1,024,000 square feet.

Le Château Inc

More Le Château Inc News... More Fashion News - Canada...