In its first quarterly report since going public last month, Rue21 Inc. said Tuesday third-quarter income skyrocketed 106.7 percent, with sales jumping 40 percent and same-store sales gaining 13.5 percent.
For the three months ended Oct. 31, income was $6 million, or 26 cents a diluted share, 106.7 percent higher than the $2.9 million, or 13 cents, reported in the year-ago quarter. Sales were up 40.7 percent, to $137.1 million from $97.5 million, and rose 13.5 percent on a same-store basis.
“We are very pleased to report strong results for our third quarter, and also to be able to continue and even improve on our trend from the first half of the year,” said Bob Fisch, Rue21’s chairman and chief executive officer. “Looking forward, we are focused on a path of significant total growth, and while much of our effort today is being placed on making sure we have a very successful holiday season, we are also working to ensure that we open 100 stores in 2010 and continue the store growth pattern we have been on for the past several years.”
The teen specialty retailer occupies space in the highly regarded “value” distribution tier and has reaped benefits as the recession has pushed many consumers to search for perceived value in their purchases.
Rue21 made its debut as a public firm on Nov. 13 on the Nasdaq Stock Exchange under the ticker RUE. The shares priced the night before at $19, above the hoped-for $16 to $18 range. The retailer sold 6.77 million shares and finished the day at $24.30, up $5.30, or 27.9 percent. Shares of Rue21 closed Tuesday at $25.10, up 50 cents, or 2.1 percent, in over-the-counter trading.
For the nine months, income jumped 77.7 percent to $14.3 million, or 63 cents a diluted share, from $8 million, or 35 cents, in the year-ago period. Sales soared 36 percent to $370.2 million from $272.3 million.