Revenues up 6.3% at apparel retailer Body Central in Q2

Summary results for the thirteen weeks ended June 30, 2012:

• Net revenues for the quarter increased 6.3% to $79.4 million, compared to $74.7 million for the second quarter of fiscal 2011.
• Store sales rose 5.9% to $68.3 million due to net store unit growth of 16.3%, offset by a comparable-store sales decrease of 7.6%.
• Direct sales rose by 9.0% to $11.0 million from $10.1 million in the second quarter of fiscal 2011.
• Income from operations was $5.5 million as compared to $8.1 million in the second quarter of fiscal 2011. Income from operations as a percentage of net revenues decreased to 6.9% from 10.8% due to increased markdowns and negative comparable store sales in the second quarter of fiscal 2012.
• Net income was $3.4 million, or $0.21 per diluted share based on 16.4 million weighted-average shares outstanding as compared to net income of $5.3 million, or $0.33 per diluted share based on 16.2 million weighted-average shares outstanding in the second quarter of fiscal 2011.
• The Company opened 15 new stores and closed 1 store during the second quarter and operated 257 stores as of June 30, 2012.

Summary results for the twenty-six weeks ended June 30, 2012:

• Net revenues for the first half of fiscal year 2012 increased 9.0% to $162.0 million, compared to $148.7 million for the first half of fiscal 2011.
• Store sales rose 8.9% to $139.3 million due to net store unit growth of 16.3%, offset by a comparable-store sales decrease of 4.5%.
• Direct sales rose by 9.5% to $22.8 million from $20.8 million in the first half of fiscal 2011.
• Income from operations was $15.0 million as compared to $16.9 million in the first half of 2011. Income from operations as a percentage of net revenues decreased to 9.3% from 11.4% due to increased markdowns and negative comparable sales in the first half of fiscal 2012.
• Net income was $9.4 million, or $0.57 per diluted share based on 16.4 million weighted-average shares outstanding as compared to net income of $10.7 million, or $0.66 per diluted share based on 16.1 million weighted-average shares outstanding in the first half of fiscal 2011.
• The Company opened 19 new stores and closed 3 stores during the first half of fiscal 2012.

Allen Weinstein, Body Central's President and CEO, stated: "Our second quarter sales and earnings were in line with our revised guidance. We believe that the shortfall in our retail business was due not only to our own missteps but also to the challenging retail environment.

“During the second quarter, we have reduced spring and summer inventory levels, began to flow fall merchandise into our stores, continued our test and reorder process and better-aligned inventory levels with sales expectations. Our direct business has had solid gains and we continue to make progress on executing several company-wide merchandising and operating initiatives.