logo
Share SHARE
FONT-SIZE Plus   Neg

Rue21 Profit Rises - Update

Rue21 Inc. (RUE) 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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
General Motors (GM) luxury brand is offering 400 dealers as it reshapes the brand's image to better compete with rivals, according to media reports. The Detroit auto maker will provide as much as $180,000 in "transition assistance" to U.S. Cadillac dealers unwilling to invest in a set of new standards... Hotwire of Expedia Inc. cautioned customers about a fake fax memo. The memo, offering deep travel discounts, has an old corporate Hotwire logo in it to falsely imply a connection with Hotwire. It carries phone numbers which are not related to travel booking site. A Singapore-based music start-up has acquired a 49 percent stake in the iconic music and pop culture-focused magazine Rolling Stone, becoming the first outsider investor in the magazine. Financial terms of the deal, which will enable Rolling Magazine to expand its international reach, were not disclosed.
comments powered by Disqus
Follow RTT