| Net sales increased 19.4% to $339.2 million from $284.0 million in the third quarter of fiscal 2009; | ||
| Comparable store sales (sales for stores open at least 14 months) increased 12.2% compared to an increase of 1.5% in the third quarter of fiscal 2009; | ||
| Gross profit increased 280 basis points to 35.1% from 32.3% in the third quarter fiscal 2009; | ||
| Selling, general and administrative (SG&A) expense as a percentage of net sales decreased 10 basis points, excluding the impact of the non-recurring compensation charge, compared to the third quarter in fiscal 2009; | ||
| Operating income increased 65.4% to $24.3 million, or 7.2% of net sales, compared to $14.7 million, or 5.2% of net sales, in the third quarter of fiscal 2009; | ||
| Net income increased 67.9% to $14.2 million compared to $8.5 million in the third quarter of fiscal 2009; excluding the non-recurring compensation charge, net income increased 78%; | ||
| Income per diluted share increased to $0.23, including $0.02 per diluted share related to the non-recurring compensation charge. Income per diluted share was $0.25, excluding |
the non-recurring compensation charge. This compares to $0.14 in the third quarter of fiscal 2009. |
| Net sales increased 18.7% to $981.2 million from $826.4 million in the first nine months of fiscal 2009; | ||
| Comparable store sales (sales for stores open at least 14 months) increased 11.3% compared to a decrease of (0.8)% in the first nine months of fiscal 2009; | ||
| Gross profit increased 320 basis points to 33.4% from 30.2% in the first nine months of fiscal 2009; | ||
| SG&A expense as a percentage of net sales decreased 50 basis points, excluding the non-recurring compensation charge, compared to the first nine months of fiscal 2009; | ||
| Operating income increased to $69.9 million, or 7.1% of net sales, compared to $33.9 million, or 4.1% of net sales, in the first nine months of fiscal 2009; | ||
| Net income increased to $40.9 million compared to $19.1 million in the first nine months of fiscal 2009; | ||
| Income per diluted share increased to $0.67, which includes $0.05 per share of non-recurring compensation charge. This compares to $0.32 in the first nine months of fiscal 2009. |
| incur capital expenditures of approximately $105 million, compared to $68.1 million in fiscal 2009; | ||
| reduce inventory by approximately 3% to 5% on an average per store basis by year end 2010; | ||
| deliver permanent operating expense efficiencies of approximately $7 million; and | ||
| generate free cash flow. |
13 Weeks Ended | 13 Weeks Ended | |||||||||||||||
October 30, | October 31, | |||||||||||||||
2010 | 2009 | |||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Net sales |
$ | 339,179 | 100.0 | % | $ | 284,043 | 100.0 | % | ||||||||
Cost of sales |
220,273 | 64.9 | % | 192,372 | 67.7 | % | ||||||||||
Gross profit |
118,906 | 35.1 | % | 91,671 | 32.3 | % | ||||||||||
Selling, general and administrative expense |
90,309 | 26.6 | % | 74,797 | 26.3 | % | ||||||||||
Pre-opening expenses |
4,305 | 1.3 | % | 2,183 | 0.8 | % | ||||||||||
Operating income |
24,292 | 7.2 | % | 14,691 | 5.2 | % | ||||||||||
Interest expense |
244 | 0.1 | % | 441 | 0.2 | % | ||||||||||
Income before income taxes |
24,048 | 7.1 | % | 14,250 | 5.0 | % | ||||||||||
Income tax expense |
9,845 | 2.9 | % | 5,790 | 2.0 | % | ||||||||||
Net income |
$ | 14,203 | 4.2 | % | $ | 8,460 | 3.0 | % | ||||||||
Net income per common share: |
||||||||||||||||
Basic |
$ | 0.24 | $ | 0.15 | ||||||||||||
Diluted |
$ | 0.23 | $ | 0.14 | ||||||||||||
Weighted average common shares outstanding: |
||||||||||||||||
Basic |
59,063 | 57,979 | ||||||||||||||
Diluted |
61,057 | 59,376 |
39 Weeks Ended | 39 Weeks Ended | |||||||||||||||
October 30, | October 31, | |||||||||||||||
2010 | 2009 | |||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Net sales |
$ | 981,179 | 100.0 | % | $ | 826,407 | 100.0 | % | ||||||||
Cost of sales |
653,780 | 66.6 | % | 576,480 | 69.8 | % | ||||||||||
Gross profit |
327,399 | 33.4 | % | 249,927 | 30.2 | % | ||||||||||
Selling, general and administrative expense |
250,947 | 25.6 | % | 210,658 | 25.5 | % | ||||||||||
Pre-opening expenses |
6,572 | 0.7 | % | 5,388 | 0.7 | % | ||||||||||
Operating income |
69,880 | 7.1 | % | 33,881 | 4.1 | % | ||||||||||
Interest expense |
576 | 0.1 | % | 1,757 | 0.2 | % | ||||||||||
Income before income taxes |
69,304 | 7.1 | % | 32,124 | 3.9 | % | ||||||||||
Income tax expense |
28,378 | 2.9 | % | 12,994 | 1.6 | % | ||||||||||
Net income |
$ | 40,926 | 4.2 | % | $ | 19,130 | 2.3 | % | ||||||||
Net income per common share: |
||||||||||||||||
Basic |
$ | 0.70 | $ | 0.33 | ||||||||||||
Diluted |
$ | 0.67 | $ | 0.32 | ||||||||||||
Weighted average common shares outstanding: |
||||||||||||||||
Basic |
58,699 | 57,847 | ||||||||||||||
Diluted |
60,723 | 59,081 |
October 30, | January 30, | October 31, | ||||||||||
2010 | 2010 | 2009 | ||||||||||
(Unaudited) | (Unaudited) | |||||||||||
Assets |
||||||||||||
Current assets: |
||||||||||||
Cash and cash equivalents |
$ | 8,351 | $ | 4,017 | $ | 3,795 | ||||||
Receivables, net |
20,386 | 13,477 | 13,340 | |||||||||
Merchandise inventories, net |
301,559 | 206,948 | 273,978 | |||||||||
Prepaid expenses and other current assets |
33,366 | 30,272 | 28,386 | |||||||||
Prepaid income taxes |
6,310 | | | |||||||||
Deferred income taxes |
8,060 | 8,060 | 7,984 | |||||||||
Total current assets |
378,032 | 262,774 | 327,483 | |||||||||
Property and equipment, net |
331,390 | 290,861 | 293,746 | |||||||||
Total assets |
$ | 709,422 | $ | 553,635 | $ | 621,229 | ||||||
Liabilities and stockholders equity |
||||||||||||
Current liabilities: |
||||||||||||
Current portion notes payable |
$ | | $ | | $ | 14,635 | ||||||
Accounts payable |
120,245 | 56,387 | 117,520 | |||||||||
Accrued liabilities |
83,808 | 59,189 | 57,811 | |||||||||
Accrued income taxes |
| 10,781 | 5,682 | |||||||||
Total current liabilities |
204,053 | 126,357 | 195,648 | |||||||||
Notes payable less current portion |
| | 24,527 | |||||||||
Deferred rent |
134,878 | 113,718 | 113,184 | |||||||||
Deferred income taxes |
20,952 | 20,952 | 17,616 | |||||||||
Total liabilities |
359,883 | 261,027 | 350,975 | |||||||||
Commitments and contingencies |
||||||||||||
Total stockholders equity |
349,539 | 292,608 | 270,254 | |||||||||
Total liabilities and stockholders equity |
$ | 709,422 | $ | 553,635 | $ | 621,229 | ||||||
39 Weeks Ended | ||||||||
October 30, | October 31, | |||||||
2010 | 2009 | |||||||
(Unaudited) | ||||||||
Operating activities |
||||||||
Net income |
$ | 40,926 | $ | 19,130 | ||||
Adjustments to reconcile net income to net cash
provided by operating activities: |
||||||||
Depreciation and amortization |
47,698 | 46,766 | ||||||
Non-cash stock compensation charges |
7,399 | 4,214 | ||||||
Excess tax benefits from stock-based compensation |
(2,309 | ) | (602 | ) | ||||
(Gain) loss on disposal of property and equipment |
(399 | ) | 199 | |||||
Change in operating assets and liabilities: |
||||||||
Receivables |
(6,909 | ) | 4,928 | |||||
Merchandise inventories |
(94,611 | ) | (60,376 | ) | ||||
Prepaid
expenses and other current assets |
(3,094 | ) | (4,092 | ) | ||||
Income taxes |
(14,782 | ) | 14,310 | |||||
Accounts payable |
63,858 | 69,709 | ||||||
Accrued liabilities |
11,556 | 8,850 | ||||||
Deferred rent |
21,160 | 11,896 | ||||||
Net cash provided by operating activities |
70,493 | 114,932 | ||||||
Investing activities |
||||||||
Purchases of property and equipment |
(74,765 | ) | (49,390 | ) | ||||
Net cash used in investing activities |
(74,765 | ) | (49,390 | ) | ||||
Financing activities |
||||||||
Proceeds on long-term borrowings |
| 863,237 | ||||||
Payments on long-term borrowings |
| (930,122 | ) | |||||
Proceeds from issuance of common stock under stock plans |
6,297 | 898 | ||||||
Excess tax benefits from stock-based compensation |
2,309 | 602 | ||||||
Net cash provided by (used in) financing activities |
8,606 | (65,385 | ) | |||||
Net increase in cash and cash equivalents |
4,334 | 157 | ||||||
Cash and cash equivalents at beginning of period |
4,017 | 3,638 | ||||||
Cash and cash equivalents at end of period |
$ | 8,351 | $ | 3,795 | ||||
Total stores open | Number of stores | Number of stores | ||||||||||||||
at beginning of the | opened during the | closed during the | Total stores open | |||||||||||||
Fiscal 2010 | quarter | quarter | quarter | at end of the quarter | ||||||||||||
1st Quarter |
346 | 2 | 1 | 347 | ||||||||||||
2nd Quarter |
347 | 10 | 1 | 356 | ||||||||||||
3rd Quarter |
356 | 30 | 2 | 384 |
Gross square feet for | ||||||||||||||||
Total gross square | stores opened or | Gross square feet for | Total gross square | |||||||||||||
feet at beginning of | expanded during the | stores closed | feet at end of the | |||||||||||||
Fiscal 2010 | the quarter | quarter | during the quarter | quarter | ||||||||||||
1st Quarter |
3,613,840 | 28,977 | 10,796 | 3,632,021 | ||||||||||||
2nd Quarter |
3,632,021 | 105,596 | 15,936 | 3,721,681 | ||||||||||||
3rd Quarter |
3,721,681 | 340,185 | 22,536 | 4,039,330 |