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rue21- RUE – Raising its prior guidance

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rue21, inc. (Nasdaq:RUE) announced its financial results for the second quarter ended July 28, 2012.

RUE – Second Quarter Highlights:

  • Net sales increased 17% to $202.1 million from $172.8 million in the second quarter of fiscal 2011. Comparable store sales for the quarter were up 0.5%.
  • Gross margin improved to 39.4% of net sales compared to 39.1% in the second quarter of fiscal 2011.
  • Selling, general and administrative expenses were $57.8 million or 28.6% of net sales, compared to $48.9 million or 28.3% of net sales. Selling, general and administrative expenses included an incremental $1.8 million in stock compensation expenses in the quarter.
  • The Company opened 39 new stores compared to opening 34 stores in the second quarter of fiscal 2011.
  • Net income increased 18.5% to $9.1 million from $7.7 million.
  • The Company ended the quarter with cash and short term investments of $56.8 million.
  • Inventory at cost per square foot was down 2.8% as compared to the end of the second quarter of 2011.
  • Diluted earnings per share were $0.36 compared to diluted earnings per share of $0.31 in the second quarter of fiscal 2011.

RUE – Year-to-Date Fiscal 2012 Highlights:

  • Net sales increased 17.9% to $407.7 million from $345.6 in the first half of 2011. Comparable store sales increased 1.1% following a 2.4% increase in the comparable period in 2011.
  • Gross margin improved to 39.1% of net sales from 39.0% in the first half of 2011.
  • Selling, general and administrative expenses were 27.4% of net sales compared to 27.3% in 2011.
  • The Company opened 79 new stores.
  • Net income increased 19.7% to $20.7 million from $17.3 million.

RUE – 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.

RUE  – 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.

About rue21, inc. – RUE

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.

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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