EPS growth of 18.2% for the quarter and 28.1% for the fiscal year
WARRENDALE, Pa., March 14, 2012 (GLOBE NEWSWIRE) -- rue21, inc. (Nasdaq:RUE) today announced its financial results for the fourth quarter and fiscal year ended January 28, 2012. Highlights for the Fourth Quarter: Highlights for Fiscal Year 2011: Balance sheet highlights as of January 28, 2012:
Bob Fisch, rue21's President and CEO, stated: "In fiscal 2011 we were again able to meet our short and long-term objectives despite the promotional environment and economic pressures. We maintained our planned promotional cadence throughout 2011, allowing us to achieve margin expansion during a period when much of the sector suffered from margin erosion. In 2012 we will continue to drive profit growth by offering fashion at every day great value to our customers, growing square footage, and driving comp store sales with exciting initiatives." Outlook:
For fiscal 2012, the Company currently expects diluted earnings per share to be in the range of $1.74 to $1.79 as compared to $1.55 in fiscal 2011. This incorporates 25.4 million average diluted shares expected for fiscal 2012 as compared to 25.1 million average diluted shares in fiscal 2011. Diluted earnings per share for the first quarter are expected to be in the range of $0.42 to $0.44. The Company currently expects a low single digit comparable store sales increase in the first quarter of fiscal 2012 and for fiscal 2012.
Mr. Fisch further stated: "We are confident that our 2012 financial performance will match the earnings growth we have consistently delivered for our shareholders. Our spring merchandise assortment has resonated well with our customers. February has historically been a strong volume month for rue, and we again achieved sales that support our guidance for the quarter." Conference Call Information:
A conference call to discuss fourth quarter and fiscal 2011 financial results is scheduled for today, March 14, 2012 at 4:30 PM Eastern Time. To participate, dial toll-free (877) 719-9788 or 1-719-325-4756 (international). The conference call will also be webcast live at www.rue21.com under the Investor Relations section. A replay of this call will be available on the Investor Relations section of the Company's website, www.rue21.com, within two hours of the conclusion of the call and will remain on the website for ninety days. 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 770 stores in 46 states. Learn more at www.rue21.com Forward Looking Statements: Certain statements herein, including statements relating to future store openings and growth strategies, are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company's current expectations or beliefs concerning future events and actual results of operations may differ materially from historical results or current expectations. Any such
forward-looking statements are subject to various risks and uncertainties, including the strength of the economy, consumer spending, our ability to effectively identify and respond to changing fashion trends, our ability to compete with other retailers, our strategy and expansion plans, implementation of systems upgrades, reliance on key personnel, trade restrictions, events that may affect our vendors or their ability to finance their operations, availability of suitable new store locations and other factors which are set forth in the Company's Annual Report on Form 10-K filed March 29, 2011, and in all filings with the SEC made by the Company subsequent to the filing of the Form 10-K. The Company does not undertake to publicly update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
Gross Margin expansion of 70 bps for the quarter and the fiscal year
Net Sales growth of 15.7% for the quarter and 19.8% for the fiscal year
rue21, inc. Consolidated Statements of Income Thirteen Weeks Ended Fifty-two Weeks Ended January 28, January 29, January 28,
January 29, 2012 2011 2012 2011 (Unaudited) (in thousands, except per share data)
Net sales
$ 219,896
$ 190,093
$ 760,302
$ 634,728
Cost of goods sold (includes certain buying, occupancy and distribution center expenses)
139,531
122,090
473,662
399,896
Gross profit
80,365
68,003
286,640
234,832
Selling, general, and administrative expense
52,130
44,337
197,176
163,006
Depreciation and amortization expense
7,262
5,947
26,618
21,980
Income from operations
20,973
17,719
62,846
49,846
Interest expense, net
16
(2)
(9)
74
Income before income taxes
20,957
17,721
62,855
49,772
Provision for income taxes
8,036
6,831
23,905
19,528
Net income
$ 12,921
$ 10,890
$ 38,950
$ 30,244
Basic income per common share
$ 0.53
$ 0.45
$ 1.60
$ 1.25
Diluted income per common share
$ 0.52
$ 0.44
$ 1.55
$ 1.21
Weighted average basic common shares outstanding
24,467
24,335
24,417
24,277
Weighted average diluted common shares outstanding
25,054
25,029
25,051
25,002
rue21, inc. Consolidated Balance Sheets January 28, January 29, 2012 2011 (Unaudited)
(in thousands, except per share data) Assets
Current assets:
Cash and cash equivalents
$ 41,960
$ 50,111
Short term investments
30,000
--
Accounts receivable
6,675
6,285
Merchandise inventory, net
131,136
96,051
Prepaid expenses and other current assets
14,338
10,580
Deferred tax assets
5,121
5,024
Total current assets
229,230
168,051
Property and equipment, net
117,798
91,371
Other assets
994
921
Total assets
$ 348,022
$ 260,343 Liabilities and stockholders' equity
Current liabilities:
Accounts payable
$ 103,914
$ 81,627
Accrued expenses and other current liabilities
16,570
15,616
Accrued payroll and related taxes
12,045
12,053
Deferred rent and tenant allowances, current portion
8,652
7,033
Accrued income and franchise taxes
1,068
1,999
Total current liabilities
142,249
118,328
Non-current liabilities:
Deferred rent, tenant allowances and other long-term liabilities
46,965
34,235
Deferred tax liabilities
11,585
5,651
Total non-current liabilities
58,550
39,886
Commitments and Contingencies
—
—
Stockholders' equity:
Common stock -- par value $0.001 per share; 200,000 shares authorized; 24,476 and 24,380 shares issued and outstanding, respectively
24
24
Additional paid in capital
37,696
31,552
Retained earnings
109,503
70,553
Total stockholder's equity
147,223
102,129
Total liabilities and stockholders' equity
$ 348,022
$ 260,343 CONTACT: Joseph Teklits / Jill Gaul
ICR, Inc
203-682-8200
jteklits@icrinc.com
