WARRENDALE, Pa., Dec. 8, 2009 (GLOBE NEWSWIRE) -- rue21, inc. (Nasdaq:RUE) today announced financial results for the third quarter and fiscal year-to-date 2009.
Highlights for the thirteen weeks ended October 31, 2009:
* Net sales for the third quarter ended October 31, 2009 increased 40.7% to $137.1 million, compared to $97.5 million in the third quarter of 2008 ended November 1, 2008. * Comparable-store sales for the third quarter of fiscal 2009 increased by 13.5% over the third quarter of fiscal 2008. * Operating margin increased to 7.3% of net sales from 5.2% of net sales a year ago, and net income was $6.0 million versus $2.9 million of net income in the third quarter of fiscal 2008. * Diluted earnings per share were $0.26 on net income of $6.0 million compared to diluted earnings per share of $0.13 on net income of $2.9 million in the third quarter of fiscal 2008. * During the third quarter of fiscal 2009 the Company opened 29 stores and ended with 534 stores.
Highlights for the thirty-nine weeks ended October 31, 2009:
* Net sales increased 36.0% to $370.2 million from $272.3 million for the same period a year ago, which ended November 1, 2008. * Comparable-store sales for the period increased 7.4% from the comparable period in 2008. * Operating margin increased to 6.5% of net sales from 5.3% of net sales a year ago, and net income was $14.3 million versus $8.0 million for the same period in 2008. * Diluted earnings per share were $0.63 on net income of $14.3 million compared to diluted earnings per share of $0.35 on net income of $8.0 million for the comparable period in fiscal 2008. * For the thirty-nine weeks ended October 31, 2009, the Company opened 85 stores and closed none.
Bob Fisch, rue21's Chairman and CEO, stated: "We are very pleased to report strong results for our third quarter, and also to be able to continue and even improve on our trend from the first half of the year. Looking forward, we are focused on a path of significant total growth; and while much of our effort today is being placed on making sure we have a very successful Holiday season, we are also working to ensure that we open 100 stores in 2010 and continue the store growth pattern we have been on for the past several years." Mr. Fisch continued: "I want to thank the entire rue21 team for their hard work and effort. We continue to raise the bar and take the company to the next level, in both business actions as well as having fun in what we do as a team at rue."
Conference Call Information
A conference call to discuss third quarter financial results is scheduled for today, December 8, 2009, at 4:30 PM Eastern Time. The conference call will be webcast live at www.rue21.com. 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 the newest trends at a great value. As of December 7, 2009, rue21 operated 537 store locations in 43 states. With exclusive branded merchandise designed to appeal to anyone who wants to look and feel "21", rue21 is building a loyal customer base and is well-positioned for future growth. 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 Prospectus and in all filings with the SEC made by the Company subsequent to the filing of the Prospectus. 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.
Condensed Consolidated Balance Sheets
October 31, January 31, November 1,
2009 2009 2008
------------------------------------
(Unaudited, in thousands)
Assets
Current assets:
Cash and cash equivalents $ 5,330 $ 4,611 $ 3,861
Merchandise inventory, net 87,182 66,838 76,492
Prepaid expenses and other
current assets 14,718 12,299 13,171
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Total current assets 107,230 83,748 93,524
Net property and equipment 70,836 56,687 50,293
Other assets 1,682 765 1,563
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Total assets $ 179,748 $ 141,200 $ 145,380
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Liabilities and stockholders'
equity
Current liabilities:
Current maturities of term debt $ -- $ -- $ 197
Accounts payable 73,977 60,449 54,400
Accrued expenses and other
current liabilities 25,249 22,501 18,442
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Total current liabilities 99,226 82,950 73,039
Long-term liabilities:
Long-term debt 21,176 19,476 39,989
Deferred rent, tenant allowances
and other long-term liabilities 26,456 20,381 18,478
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Total long-term liabilities 47,632 39,857 58,467
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Total liabilities 146,858 122,807 131,506
Commitments and Contingencies
Total stockholder's equity 32,890 18,393 13,874
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Total liabilities and
stockholders' equity $ 179,748 $ 141,200 $ 145,380
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rue21, inc.
Condensed Consolidated Statements of Income
Thirteen weeks ended Thirty-nine weeks ended
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October 31, November 1, October 31, November 1,
2009 2008 2009 2008
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(Unaudited)
(in thousands, except per share data)
Net sales $ 137,110 $ 97,465 $ 370,214 $ 272,302
Cost of goods sold
(includes certain
buying, occupancy and
distribution center
expenses) 87,539 62,315 237,733 177,219
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Gross profit 49,571 35,150 132,481 95,083
Selling, general, and
administrative expense 35,135 27,070 96,217 72,350
Depreciation and
amortization expense 4,420 2,971 12,194 8,245
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Income from operations 10,016 5,109 24,070 14,488
Interest expense, net 136 354 433 1,258
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Income before income
taxes 9,880 4,755 23,637 13,230
Provision for income
taxes 3,902 1,863 9,342 5,185
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Net income $ 5,978 $ 2,892 $ 14,295 $ 8,045
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Basic income per common
share $ 0.27 $ 0.13 $ 0.65 $ 0.37
Diluted income per
common share $ 0.26 $ 0.13 $ 0.63 $ 0.35
Weighted average basic
common shares
outstanding 22,201 21,953 22,111 21,894
Weighted average
diluted common shares
outstanding 23,058 22,822 22,828 22,823