"These results were mainly due to higher merchandise gross margin and reductions as a percent of sales in distribution and buying costs. These improvements were partially offset by higher freight and the deleveraging effect of flat comparable store sales on store and occupancy expenses."
Mr. Balmuth also noted, "Our balance sheet and cash flows remain strong. We continued to return capital to stockholders during the quarter through our stock repurchase and dividend programs. During the first three months of fiscal 2007, we repurchased 1.5 million shares of common stock for an aggregate of $51 million. We are on track to repurchase the remaining $149 million of our two-year $400 million program authorized by our Board of Directors in the fourth quarter of 2005."
Looking ahead, Mr. Balmuth said, "For the second quarter ending August 4, 2007, we are forecasting same store sales gains of 1% to 2% and earnings per share in the range of $.35 to $.37. For the second half of 2007, same store sales are forecasted to grow 3% to 4%, based on merchandising opportunities we have identified for the fall season as well as easier prior year sales comparisons."
"We also continue to project earnings per share for fiscal 2007 that are within the range of our original guidance of $1.85 to $1.95 for the 52 weeks ending February 2, 2008."
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