Based on current business trends, including comparable store sales over the past three weeks, the Company now projects its second quarter loss per share to widen from its previous expectations provided on May 20, 2010. Regarding its revised outlook for the second quarter of fiscal 2010, the Company provided the following information:
-- Comparable store sales are expected to be approximately flat.
-- Merchandise margins are projected to decrease by approximately 900 basis points versus last year reflecting higher levels of promotional activity.
-- Buying and occupancy costs are expected to slightly increase as a percentage of net sales from the year-ago period.
-- Selling, general and administrative expenses are expected to increase as a percentage of net sales by approximately 300 basis points compared to last year primarily as a result of investments in the Company's e-commerce and outlet businesses (the company hase recently entered the factory outlet industry), along with certain store expenses.
These projections exclude the impact of previously announced charges related to the closure of the Company's test accessories concept. The Company plans to report full results for the second quarter of fiscal 2010 during the week of August 16, 2010.
Source: MarketWatch
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