Net sales for the 13 weeks ended August 4, 2007 were $1.649 billion compared to sales for the 13 weeks ended July 29, 2006 of $1.685 billion. Total net sales declined 2% during the 13-week period. Sales in comparable stores declined 3%.
During the 13 weeks ended August 4, 2007, net sales in the Central region were slightly better than the Company's total performance for the period. Sales were consistent with trend in the Western region and below trend in the Eastern region. Sales in the juniors' and children's apparel category and the home and other category declined significantly more than trend during the period.
Cost of Sales - Gross Margin: Cost of sales as a percentage of sales increased to 68.5% during the 13 weeks ended August 4, 2007 compared to 66.6% for the 13 weeks ended July 29, 2006. The gross margin decline of 190 basis points of sales was primarily driven by higher markdowns.
As a result of the Company's efforts to maintain appropriate inventory levels in light of sales declines during the quarter, comparable store inventory at August 4, 2007 declined 4% compared to July 29, 2006.
By merchandise category, a slightly improved gross margin performance was noted in shoes while the home & other category and the men's apparel and accessories category posted the weakest performances compared to the total decline.
Penetration of exclusive brand merchandise for the 26 weeks ended August 4, 2007 and July 29, 2006 was 23.8% and 23.4%, respectively.
marketing@alchempro.com
