Guidance For 2010, the Company expects full year consolidated revenues to be 5% to 10% less than 2009.
Consolidated gross margin is expected to be approximately 41-42% compared with 35.8% in 2009 due to expected lower closeout sales during 2010 compared with 2009.
Selling, general & administrative expenses are expected to be $138 million to $144 million due to increased marketing expenditures. These expenditures will be continually evaluated and could change over time, including the possibility of even greater marketing expenditures depending on available branding opportunities.
The tax benefit rate is projected to be approximately 25%. Should the Company be unable to substantiate evidence for realizing the benefit of its deferred tax assets in the second half of the year, the Company might be required to establish a reserve of $14.9 million, plus any deferred tax assets established during the remainder of 2010, if any.
marketing@alchempro.com
