Breaking News
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

Rue21 Profit Rises - Update

3/21/2013 5:49 PM ET

Rue21 Inc. (RUE: Quote) Thursday said its fourth-quarter profit increased 16 percent from a year ago, driven mainly by continued double-digit revenue growth and strong margins. Earnings for the quarter came in ahead of Wall Street expectations, while revenues fell shy of estimates.

The teen apparel retailer also detailed its outlook for the first quarter and full year 2013, which is indicated to miss current estimates.

Warrendale, Pennsylvania-based Rue21's fourth-quarter profit improved to $15.0 million or $0.62 per share from $12.9 million or $0.52 per share last year.

Adjusted net income for the quarter was $15.8 million or $0.65 per share. Analysts polled by Thomson Reuters expected earnings of $0.63 per share for the quarter. Analysts' estimates typically exclude special items.

Rue21's revenues grew 22.4 percent to $269.1 million from $219.9 million last year. Analysts had a consensus revenue estimate of $270.49 million for the quarter. Comparable store sales increased 0.7 percent for the quarter.

Gross margin increased 110 basis points to 37.6 percent, reflecting improved merchandise margin and leverage of expenses.

Looking ahead, the company expects first quarter earnings in the range of $0.47 to $0.50 per share. Analysts currently expect the company to earn $0.54 per share for the first quarter.

For fiscal 2013, the company currently expect earnings in the range of $2.10 to $2.15 per share. Analysts currently expect earnings of $2.16 per share for the year.

Earnings guidance does not include the impact of the company's investments in the construction of its e-commerce platform. Rue21 expects e-commerce investments to have an impact of about $0.02 and $0.10 per share for first quarter and full year 2013, respectively.

RUE closed Thursday's regular trade at $28.46, down $0.38 or 1.32%, on a volume of 0.5 million shares on the Nasdaq. The stock further slipped $0.02 or 0.07% in after hours trade.

Register
To receive FREE breaking news email alerts for rue21, inc., and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Chipmaker Advanced Micro Devices Inc. said Thursday after the markets closed that its first quarter loss narrowed from last year, helped by strong revenue growth in its graphics and visual solutions business. The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly revenue. After trending higher over the past few sessions, stocks showed a lack of direction throughout the trading day on Thursday. The major averages spent the session bouncing back and forth across the unchanged line before ending the day mixed. While the major averages closed on opposite sides of the unchanged line, they all showed only modest moves. U.S. Secretary Of State John Kerry said Thursday that he and his counterparts from Russia, Ukraine and the European Union have reached an agreement on a preliminary plan for ending the ongoing crisis in Ukraine. Kerry was speaking at the end of the Ukraine contact group's first meeting, comprising the foreign ministers of Russia, Ukraine, the EU and the U.S., in the Swiss city of Geneva.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.