• Gross profit, as a percent of sales, increased 81 basis points over the fourth quarter fiscal 2005 result. Merchandise margin improved versus the prior year, driven mainly by lower markdowns and higher sell- through of inventory, especially in women's apparel. • Selling, general and administrative expenses as a percent to sales decreased 20 basis points versus the prior year. Overall, expenses during the fourth quarter trended in line with the improved performance in sales and gross profit compared to last year. In the fourth quarter, performance-based incentive compensation costs driven by goals for total year results and share price appreciation accelerated above plan, as fiscal 2006 sales, gross profit, and earnings before tax results exceeded expectations. • As a result of the adoption of SFAS No. 123(R), "Share-Based Payment," the company recorded $8.4 million in share-based compensation expense for the quarter, which resulted in a $0.02 impact on diluted earnings per share. Of the total expense, $3.6 million was recorded in buying and occupancy and $4.8 million was recorded in selling, general and administrative expenses. • Sales of $117.7 million in the 53rd week period resulted in earnings of $0.02 per diluted share for the quarter.
marketing@alchempro.com
