Too Inc posts higher quarterly sales, earnings on strong sales
15 Feb '06
3 min read
"Justice continues to meet or exceed our targets for store growth, sales increases and profit improvement," said Mike Rayden.
For the fiscal year ended January 28th 2006, Too Inc had net income of $54.5 million on net sales of $757.9 million, compared to net income for fiscal 2004 of $41.6 million on net sales of $675.8 million. The earnings improvement for fiscal 2005 was largely a result of increased sales and a higher gross income rate as a percentage of net sales, partially offset by higher marketing expense.
Justice opened 10 stores during the 2005 fourth quarter, ending the year at 92 stores, an increase of 57 stores for fiscal 2005. Justice is targeting 75 store openings in 2006.
Limited Too remodeled 2 existing stores during the quarter and closed 1 under performing store, ending the fiscal year at 574 stores. Plans call for the remodeling of 33 stores during 2006, the opening of 9 Limited Too stores and the closing of 13 under performing stores, 9 of which have already been closed in February.
Too said it expects a first quarter 2006 same-store sales increase of 3 percent including approx. $0.02 for stock option expense.
Commenting on the company's positive outlook for first quarter, Rayden said, "Sales of our spring fashions for both brands are off to a good start in early February, giving us confidence in our outlook for the current quarter."
Too Inc is a leading specialty retailer for young girls. At Limited Too, the company sells sportswear, related accessories and key lifestyle items for active, fashion-aware 'tween (ages 7 to 14) girls.
Limited Too currently operates 565 stores in 46 states and Puerto Rico, and has a select number of international franchised stores. Limited Too publishes a catalog coinciding with key 'tween shopping times throughout the year.
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