Too Inc. had fourth-quarter 2004 net income of $23.3 million, or $0.66 per share, on net sales of $206.8 million, compared to fourth-quarter 2003 net income of $17.7 million, or $0.51 per share, on net sales of $183.0 million. The company's fiscal 2004 net income was $41.4 million, or $1.18 per share, on net sales of $675.8 million, compared to fiscal 2003 net income of $22.6 million, or $0.65 per share, on net sales of $598.7 million.
Too Inc. may be obliged to restate its previous financial statements "to correct an error in its lease accounting to record construction allowances provided by landlords as deferred rent," said Robert Atkinson, VP of investor relations, during Wednesday's earning conference call. "The company is in the process of evaluating the impact of the correction on its previously issued financial statements, and a final determination is still pending. However, any restatement would not have a significant impact on its consolidated statements of income for prior periods or the current period."
The company attributed its strong sales to a strong holiday and post-holiday season. "The momentum gained in the third quarter was sustained in the holidays, and we've seen early positive traction for spring," said chairman, president and CEO Mike Rayden, also during the earnings call. Looking ahead, he notes that next week Limited Too will kick off its spring television advertising campaign on popular "tween" programming, modeled after last fall's back-to-school television ad campaign, which the company believes was a success.
"We have determined that television is a very effective medium for conveying our brand message to our target customers, 'tween' girls and their moms," said Rayden. He added that trimming or eliminating some of Limited Too's other marketing and promotions would largely offset the cost of the television advertising.
Limited Too opened 25 stores in 2004, closed ten, remodeled 20 and completed three separations from adjacent the Limited stores. Six of the remodeled stores were done in Limited Too's new "It's a Girl's World" store design, introduced in last fall. Limited Too plans to open 12 to 15 new stores in 2005 and remodel 25 to 30 existing stores. All of the new stores and remodels will be done in the "It's a Girl's World" format.
Justice opened 30 stores during fiscal 2004, adding to the five that opened last January. The company plans a major rollout of the Justice concept in 2005, opening 50 to 60 stores this year, primarily in retail power strip centers. Justice will open its first stores in Alabama, Arizona, California, Kansas, Massachusetts, Mississippi, New York, North and South Carolina, Pennsylvania and Virginia, adding to the 14 states in which it already operates.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
