Store Growth: Justice opened 25 stores during the first quarter 2007, ending the period at 184 stores, an increase of 82 stores on the 102 open at end of first quarter 2006. Justice remains on target to open a total of 100 new stores in 2007.
Limited Too opened ten new, closed three and remodeled six existing stores into the more contemporary Girl's World store format, ending the period at 570 stores. Limited Too continues to plan a net increase of 25 to 30 new stores and 40 to 50 remodels for 2007.
"Store growth for 2007 is a key component of our strategic plan for the company," said Mr. Rayden. "We intend to add more than a half million square feet to our store base in 2007, representing an increase of 17% to 19% over 2006."
Capital expenditures for the first quarter 2007 increased $9 million over first quarter 2006, to $23 million.
Second Quarter and Full Year Outlook: For the second quarter of 2007, Tween Brands is projecting earnings per diluted share of $0.13 to $0.16. The earnings range assumes flat to slightly down comparable store sales, a decrease in the gross income rate of 30 to 60 basis points, and a similar basis point increase in store operating, general and administrative expenses as a rate of sales, primarily due to the continued introduction of Justice spring season catazines.
The second quarter 2007 income tax rate is expected to be higher than that for the like period last year, which benefited from a favorable state tax settlement. The company expects store inventories at the end of the second quarter to be flat to down slightly on a cost per square foot basis when compared to end of second quarter 2006 inventories.
For fiscal 2007, Tween Brands reiterated its projected earnings per diluted share of $2.15 to $2.25, which would be a 10% to 15% increase on the $1.95 reported for fiscal 2006. The operating results for the 52 weeks of the 2007 fiscal year will be compared to those reported for the 53 weeks of the 2006 fiscal year.
marketing@alchempro.com
