WARRENDALE, Pa., Aug. 23, 2012 (GLOBE NEWSWIRE) -- rue21, inc. (Nasdaq:RUE) today announced its financial results for the second quarter ended July 28, 2012. Second Quarter Highlights: Year-to-Date Fiscal 2012 Highlights:
Bob Fisch, rue21's President and CEO, stated: "We continued to achieve consistent net income growth in the second quarter driven by our balanced product assortments, flexible real estate and sales growth strategies. We are on track to open 120 stores this year in new markets across the United States, and the stores we have opened in 2012 are achieving record performance in sales and profits. In addition to the strong results generated by the new stores, we expect the strategic initiatives put in place by our merchandising, planning, allocation and operations teams to generate solid comparable store sales in the back half of 2012. We have confidence in our ability to continue delivering profitable growth for the remainder of the year." Stock Repurchase Program:
During the second quarter of fiscal 2012, the Company repurchased 496,000 shares for $12.9 million. The stock repurchase program had no impact on diluted earnings per share in the second quarter. At the end of the second quarter, $37.1 million of the $50 million stock repurchase program authorized in May 2012 remained available for future share repurchases. Under the 2012 stock repurchase program, the Company may repurchase shares in the open market at current market prices at the time of purchase or in privately negotiated transactions. The timing and actual number of shares repurchased under the program will depend on a variety of factors including price, corporate and regulatory requirements, and other market and business conditions. The Company may suspend or discontinue the program at any time, and may thereafter reinstitute purchases, all without prior announcement.
Outlook:
For fiscal 2012, the Company is raising its prior guidance based on second quarter results and expects diluted earnings per share to be in the range of $1.80 to $1.85 versus its previous guidance of $1.76 to $1.81, and as compared to $1.55 in fiscal 2011. This incorporates 25.0 million average diluted shares expected for fiscal 2012 as compared to 25.1 million average diluted shares in fiscal 2011. For the third quarter of fiscal 2012, the Company currently expects low single digit comparable store sales. Diluted earnings per share for the third quarter are expected to be in the range of $0.38 to $0.40. Conference Call Information:
A conference call to discuss second quarter fiscal 2012 financial results is scheduled for today, August 23, 2012 at 4:30 PM Eastern Time. To participate, dial toll-free (888) 389-5993 or 1-719-785-9446 (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 843 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 27, 2012, 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.
rue21, inc. and subsidiaries Consolidated Statements of Income
Thirteen weeks ended Twenty-six weeks ended
July 28,
2012July 30,
2011July 28,
2012July 30,
2011
(Unaudited)
(in thousands, except per share data)
Net sales
$ 202,059
$ 172,770
$ 407,674
$ 345,645
Cost of goods sold (includes certain buying, occupancy and distribution center expenses)
122,528
105,141
248,462
210,769
Gross profit
79,531
67,629
159,212
134,876
Selling, general, and administrative expense
57,801
48,867
111,596
94,240
Depreciation and amortization expense
8,017
6,410
15,545
12,513
Income from operations
13,713
12,352
32,071
28,123
Interest income, net
(22)
(19)
(52)
(41)
Income before income taxes
13,735
12,371
32,123
28,164
Provision for income taxes
4,645
4,702
11,430
10,875
Net income
$ 9,090
$ 7,669
$ 20,693
$ 17,289
Basic income per common share
$ 0.37
$ 0.31
$ 0.85
$ 0.71
Diluted income per common share
$ 0.36
$ 0.31
$ 0.83
$ 0.69
Weighted average basic common shares outstanding
24,420
24,415
24,458
24,394
Weighted average diluted common shares outstanding
25,022
25,080
25,079
25,066
rue21, inc. and subsidiaries Consolidated Balance Sheets
July 28,
2012January 28,
2012July 30,
2011
(Unaudited)
(Unaudited)
(in thousands, except per share data) Assets
Current assets:
Cash and cash equivalents
$ 39,835
$ 41,960
$ 43,404
Short term investments
17,000
30,000
--
Accounts receivable
11,322
6,675
12,773
Merchandise inventory, net
160,864
131,136
137,364
Prepaid expenses and other current assets
14,126
11,767
12,595
Deferred tax assets
5,854
5,121
5,645
Total current assets
249,001
226,659
211,781
Property and equipment, net
133,202
117,798
107,280
Other assets
3,335
3,565
3,691
Total assets
$ 385,538
$ 348,022
$ 322,752 Liabilities and stockholders' equity
Current liabilities:
Accounts payable
$ 121,525
$ 103,914
$ 114,902
Accrued expenses and other current liabilities
19,538
16,570
16,731
Accrued payroll and related taxes
12,259
12,045
11,228
Deferred rent and tenant allowances, current portion
9,478
8,652
8,212
Accrued income and franchise taxes
—
1,068
—
Total current liabilities
162,800
142,249
151,073
Non-current liabilities:
Deferred rent, tenant allowances and other long-term liabilities
54,774
46,965
44,063
Deferred tax liabilities
7,560
11,585
4,952
Total non-current liabilities
62,334
58,550
49,015
Commitments and Contingencies
—
—
—
Stockholders' equity:
Preferred stock--- par value $0.001 per share, 10,000 shares authorized; none issued or outstanding
—
—
—
Common stock--- par value $0.001 per share; 200,000 shares authorized; 24,063, 24,476 and 24,459 shares issued and outstanding, respectively.
25
24
24
Additional paid in capital
43,442
37,696
34,800
Treasury stock, 507, -0--, and -0- shares, respectively
(13,258)
—
—
Retained earnings
130,195
109,503
87,840
Total stockholders' equity
160,404
147,223
122,664
Total liabilities and stockholders' equity
$ 385,538
$ 348,022
$ 322,752 CONTACT: Joseph Teklits / Jill Gaul
ICR, Inc
203-682-8200
jteklits@icrinc.com
