Fourth Quarter Fiscal 2012 Summary:
For the fourth quarter of fiscal 2012, net sales increased 22.4% to $269.1 million from $219.9 million a year ago, including a comparable store sales increase for the quarter of 0.7% following a 2.2% decrease in the fourth quarter of fiscal 2011. The Company opened 17 new stores and closed 2 stores in the fourth quarter of fiscal 2012. Gross margin increased 110 bps to 37.6% for the quarter, driven by improved merchandise margin of 70 basis points and leverage of expenses.
Net income and diluted earnings per share (EPS) for the fourth quarter were impacted by non-recurring professional fees of $1.2 million. On a GAAP basis, net income increased 16.4% and EPS were $0.62 versus $0.52 in the fourth quarter of 2011. Adjusting out non-recurring professional fees in this year's fourth quarter, net income increased by 22.4% and adjusted EPS were $0.65 versus $0.52 in the fourth quarter of fiscal 2011. A reconciliation of GAAP to non-GAAP financial measures is included in the schedules accompanying the consolidated financial statements.
Bob Fisch, rue21's President and CEO, stated: "Fiscal 2012 was another year of consistent top and bottom line growth for rue21, including record gross margin and double-digit growth in net income. We continue to focus on the qualities that make rue21 appealing to our customers and our financial returns attractive for our shareholders: offering current fashion at every day great value, executing on our strategic square footage growth, and methodically delivering productivity and profitability gains every quarter."
Fiscal Year 2012 Summary:
For fiscal 2012, net sales increased 18.6% to $901.9 million, and comparable-store sales increased 0.7%. Gross margin increased 60 bps to 38.3% from 37.7%, driven primarily by merchandise margin improvement. The Company opened 125 new stores, closed 3 stores, and ended the year with 877 stores. On a GAAP basis, net income increased 12.7% and EPS were $1.76 versus $1.55 in fiscal year 2011.
Net income and EPS for fiscal 2012 were impacted by non-recurring professional fees and non-recurring litigation expense associated with the settlement and related costs of wage and hour claims in California. Adjusted net income increased 19.4% for the year, to $46.5 million from $39.0 million. Adjusted EPS were $1.87 in fiscal 2012 as compared to $1.55 in fiscal 2011. For the year, cash and short term investments decreased 11.7% to $63.5 million. During fiscal 2012, the Company repurchased 925,668 shares of its stock for $25 million. The Company did not borrow during the year and had no long term debt as of February 2, 2013. Total Company inventory per square foot was up 2.3% from the prior year end.
About rue21, Inc.
rue21 is a leading specialty apparel retailer offering exclusive branded merchandise and the newest trends at a great value. Rue21 currently operates 900 stores in 47 states.