This has been a key driver of the outstanding comparable store sales increase which has permitted the Company to achieve a significant reduction in fixed store costs like rent, depreciation and utilities as a percentage of sales.
Marketing, General and Administrative expense, as a percentage of sales, declined to 11.9% from 12.9% due primarily to the fact that general and administrative expenses in 2004 included a significant one time cost of approximately $5 million.
Net income for the quarter increased 34% to $57.4 million from $42.9 million for the second quarter of fiscal 2004.
Net income per share on a fully-diluted basis for the second quarter ended July 30, 2005 increased 43% to $0.63 versus $0.44 for the comparable period last year.
Inventories increased to $364 million from $227 million at the end of the first quarter of 2005 and $199 million at the end of the second quarter last year. Most of this increase is represented by denim and other basic merchandise categories which are not subject to significant markdown risk while fall fashion merchandise categories have been increased in line with the growth in sales. Remaining spring and summer merchandise levels are virtually unchanged from last year.
2005 Outlook Based on a sales plan of approximately $2.7 billion for fiscal 2005, the company expects net income per share on a fully-diluted basis to be in the range of $3.10 to $3.30, an increase from its previously issued guidance of $2.80 to $3.00 per diluted share for fiscal 2005.
marketing@alchempro.com
