Large-size women's fashion apparel & footwear specialty retailer United Retail Group Inc announced earnings for the first quarter, ended April 30, 2005.
Net sales increased 9% to $106.5 million from $97.5 million in the prior year period.
Comparable store sales increased 11%.
Transactions per average store increased 23% versus the first quarter last year.
Net income for the first quarter was $1.0 million, or $0.08 per diluted share, versus a net loss of $3.4 million, or $0.26 per share, in the comparable quarter last year.
Net income for the first quarter included expenses incurred in connection with the preparation for the Stockholder's Annual Meeting in June 2005. Specifically, there was a $0.9 million increase in expenses in the quarter due to legal and consulting fees in connection with a potential proxy contest.
George R. Remeta, the Company's Vice Chairman and Chief Administrative Officer, stated, "As we previously reported, a stockholder served notice on the Company to reserve the right to nominate four candidates for election to the Company's Board of Directors at the Annual Meeting of Stockholders next month. The nominations were withdrawn following discussions."
Raphael Benaroya, the Company's Chairman, President and Chief Executive Officer, commented, "I am pleased with the profitable first quarter, especially because the results reflect strong customer acceptance across a broad range of products. Also, the positive momentum in transactions per average store has continued. Specifically, transactions per average store increased 23% in the first quarter this year, building on an 18% increase in the Fall season last year. The transaction growth in the first quarter was highest in the Company's two southernmost fashion regions; the regions that were least affected by unseasonably cool weather."
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