rue21 Falls Despite Improving Revenues
Shares of rue21 (NASDAQ: RUE) are trading lower in the after-hours following the release of the company's Q4 earnings results. Currently, shares are lower by 5.36%, trading at $27.20; they ended the regular session higher by 0.28%, at $28.74.
rue21 reported Q4 EPS of $0.52 on revenues of $219.9 million. Revenues increased 15.7% year over year. Gross margin increased 70 bps to 36.5% from 35.8%, driven by improved merchandise margin.
Bob Fisch, rue21's President and CEO, stated: "In fiscal 2011 we were again able to meet our short and long-term objectives despite the promotional environment and economic pressures. We maintained our planned promotional cadence throughout 2011, allowing us to achieve margin expansion during a period when much of the sector suffered from margin erosion.”
“In 2012 we will continue to drive profit growth by offering fashion at every day great value to our customers, growing square footage, and driving comp store sales with exciting initiatives."
For fiscal 2012, the Company currently expects diluted earnings per share to be in the range of $1.74 to $1.79 as compared to $1.55 in fiscal 2011. Diluted earnings per share for the first quarter are expected to be in the range of $0.42 to $0.44.
rue21, Inc. is a specialty apparel retailer. As of January 29, 2011, the company operated 638 stores in 44 states throughout the United States.
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