"The third quarter was notable because of strong net sales increases in all three channels - retail stores, Internet and catalogs - as we successfully navigated what proved to be a highly promotional marketplace during the fall season," Pence added.
Gross profit for the fiscal 2006 third quarter was $122.2 million, or 47.7 percent of net sales, compared with $87.5 million, or 46.8 percent of net sales, for the fiscal 2005 third quarter.
The increase in gross profit rate was primarily due to higher merchandise margins associated with our
direct sourcing program and improved leveraging of our retail occupancy costs, partially offset by increased promotional activity.
Selling, general and administrative expenses for the fiscal 2006 third quarter were $97.9 million, or 38.2 percent of net sales, compared with $71.1 million, or 38.1 percent of net sales, for the fiscal 2005 third quarter.
The increase in selling, general and administrative expenses of $26.7 million was driven primarily by increases in marketing, personnel and overhead costs associated with the company's retail expansion.
Income from operations for the fiscal 2006 third quarter increased $7.9 million, or 48.3 percent, to $24.3 million, or 9.5 percent of net sales, compared with $16.4 million, or 8.8 percent of net sales, for the fiscal 2005 third quarter.
marketing@alchempro.com
