Net income for the quarter was about $1.3 million or $0.06 per fully diluted share. Last year's net income was $1.2 million, also $0.06 per share.

"Although we were disappointed with our comp-store sales results and our flat net income performance," says Jack Parker, CEO, "We are optimistic for the remainder of the year as we did see positive results in the 21 stores where conditions were consistent with the prior year." Sales were up 9% in these 21 southern-located stores, which did not have the harsh winter that the Northeast had.

Moore is planning on a large expansion in Florida over the next few years, partially because of the reduced cost of real estate and operations. Larry Fine, president & COO, states that last year the company's focus was split between running the stores and opening a new distribution center.

"We are confident in our merchandising plans as well as with the improvements we are seeing in our distribution processes and productivity," Parker says. "This allows us to re-affirm our earnings forecast for the year of $1.06 to $1.09 per share."

A.C. Moore operates 96 art supply stores in Eastern states. Over 45,000 SKUs are sold in a store at any one time, with over 60,000 SKUs over the course of a year.