rue21 inc. (RUE, Financial) filed Quarterly Report for the period ended 2010-05-01.
Rue21 Inc. has a market cap of $831.8 million; its shares were traded at around $34.3 with a P/E ratio of 30.9 and P/S ratio of 1.6. RUE is in the portfolios of Columbia Wanger of Columbia Wanger Asset Management, Steven Cohen of SAC Capital Advisors, Columbia Wanger of Columbia Wanger Asset Management.
Selling, general and administrative expense increased 28.0%, or $8.2 million, to $37.3 million in the thirteen weeks ended May 1, 2010 as compared to $29.1 million in the thirteen weeks ended May 2, 2009. As a percentage of net sales, selling, general and administrative expense increased to 27.1% in the thirteen weeks ended May 1, 2010 as compared to 27.0% in the thirteen weeks ended May 2, 2009. During the thirteen weeks ended May 1, 2010, we incurred $0.6 million of public company expenses, $0.6 million in expense related to our secondary offering of common stock completed in March and $0.3 million in share-based compensation expense. Except for an immaterial amount of share-based compensation expense, we did not incur any of these costs during the thirteen weeks ended May 2, 2009. Excluding the impact of these items, selling, general and administrative expenses as a percentage of net sales, would have decreased to 25.9% in the thirteen weeks ended May 1, 2010.
Depreciation and amortization expense increased as a percentage of net sales to 3.6% for the thirteen weeks ended May 1, 2010 as compared to 3.4% in the thirteen weeks ended May 2, 2009, or $1.3 million. The increase was due to growth in capital expenditures to $8.7 million for the thirteen weeks ended May 1, 2010 as compared to $6.5 million in the thirteen weeks ended May 2, 2009. This increase follows increases in capital expenditures of $7.2 million in fiscal year 2009 as compared to fiscal year 2008.
As of May 1, 2010, we had cash and cash equivalents totaling $27.8 million. Our cash and cash equivalents consist of cash on deposit and credit and debit card transactions. Our cash and cash equivalents balance at May 1, 2010 increased by $1.0 million from $26.8 million at January 30, 2010. Components of this change in cash for the thirteen weeks ended May 1, 2010, as well as for change in cash for the thirteen weeks ended May 2, 2009, are provided below in more detail.
Net cash provided by operating activities was $9.4 million and $5.7 million for the thirteen weeks ended May 1, 2010 and the thirteen weeks ended May 2, 2009, respectively. The $3.7 million improvement in the thirteen weeks ended May 1, 2010 as compared to the thirteen weeks ended May 2, 2009 was primarily due to increased net income ($2.8 million), increased share-based compensation expense ($0.3 million) and higher non-cash depreciation and amortization ($1.3 million) expense. Improvements in our requirements for inventory net of accounts payable increased our cash provided by operating activities by $0.8 million for the thirteen weeks ended May 1, 2010 as compared to the thirteen weeks ended May 2, 2009. These increases were offset by a cash usage of approximately $1.3 million in other working capital components versus the comparable prior year period.
For the thirteen weeks ended May 1, 2010 capital expenditures, net of tenant allowances and proceeds from the sale of property and equipment increased $0.8 million as compared to the thirteen weeks ended May 2, 2009. During the thirteen weeks ended May 1, 2010, we opened 31 new stores and converted 13 existing stores as compared to 31 new stores and 9 conversions in the thirteen weeks ended May 2, 2009, respectively. Capital expenditures for the new stores and conversions of existing stores increased $0.7 million to $3.1 million during the thirteen weeks ended May 1, 2010 as compared to $2.4 million in the comparable prior year period. Additionally, the expansion of the distribution center accounted for $0.5 million of the increase during the thirteen weeks ended May 1, 2010. These increases were offset by lower capital expenditures for information technology of $0.6 million versus the comparable prior year period.
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Rue21 Inc. has a market cap of $831.8 million; its shares were traded at around $34.3 with a P/E ratio of 30.9 and P/S ratio of 1.6. RUE is in the portfolios of Columbia Wanger of Columbia Wanger Asset Management, Steven Cohen of SAC Capital Advisors, Columbia Wanger of Columbia Wanger Asset Management.
Highlight of Business Operations:
In the thirteen weeks ended May 1, 2010, our net sales increased 27.6%, or $29.8 million, to $137.8 million as compared to $108.0 million in the thirteen weeks ended May 2, 2009. This increase in net sales was due to an increase of approximately 32% in the number of transactions, primarily driven by new store openings during the second half of fiscal year 2009 and the thirteen weeks ended May 1, 2010. The increase in the number of transactions was offset by a decrease of approximately 3% in the average dollar value of transactions per store. During the thirteen weeks ended May 1, 2010, we opened 31 new stores and closed 1 store compared to 31 new stores and no store closures in the thirteen weeks ended May 2, 2009. Our comparable store sales increased 7.7% in the thirteen weeks ended May 1, 2010 compared to an increase of 8.3% in the thirteen weeks ended May 2, 2009. Comparable store sales increased by $7.8 million and non-comparable store sales increased by $22.0 million in the thirteen weeks ended May 1, 2010 compared to the thirteen weeks ended May 2, 2009. There were 445 comparable stores and 120 non-comparable stores open at May 1, 2010 compared to 349 and 131, respectively, at May 2, 2009.Selling, general and administrative expense increased 28.0%, or $8.2 million, to $37.3 million in the thirteen weeks ended May 1, 2010 as compared to $29.1 million in the thirteen weeks ended May 2, 2009. As a percentage of net sales, selling, general and administrative expense increased to 27.1% in the thirteen weeks ended May 1, 2010 as compared to 27.0% in the thirteen weeks ended May 2, 2009. During the thirteen weeks ended May 1, 2010, we incurred $0.6 million of public company expenses, $0.6 million in expense related to our secondary offering of common stock completed in March and $0.3 million in share-based compensation expense. Except for an immaterial amount of share-based compensation expense, we did not incur any of these costs during the thirteen weeks ended May 2, 2009. Excluding the impact of these items, selling, general and administrative expenses as a percentage of net sales, would have decreased to 25.9% in the thirteen weeks ended May 1, 2010.
Depreciation and amortization expense increased as a percentage of net sales to 3.6% for the thirteen weeks ended May 1, 2010 as compared to 3.4% in the thirteen weeks ended May 2, 2009, or $1.3 million. The increase was due to growth in capital expenditures to $8.7 million for the thirteen weeks ended May 1, 2010 as compared to $6.5 million in the thirteen weeks ended May 2, 2009. This increase follows increases in capital expenditures of $7.2 million in fiscal year 2009 as compared to fiscal year 2008.
As of May 1, 2010, we had cash and cash equivalents totaling $27.8 million. Our cash and cash equivalents consist of cash on deposit and credit and debit card transactions. Our cash and cash equivalents balance at May 1, 2010 increased by $1.0 million from $26.8 million at January 30, 2010. Components of this change in cash for the thirteen weeks ended May 1, 2010, as well as for change in cash for the thirteen weeks ended May 2, 2009, are provided below in more detail.
Net cash provided by operating activities was $9.4 million and $5.7 million for the thirteen weeks ended May 1, 2010 and the thirteen weeks ended May 2, 2009, respectively. The $3.7 million improvement in the thirteen weeks ended May 1, 2010 as compared to the thirteen weeks ended May 2, 2009 was primarily due to increased net income ($2.8 million), increased share-based compensation expense ($0.3 million) and higher non-cash depreciation and amortization ($1.3 million) expense. Improvements in our requirements for inventory net of accounts payable increased our cash provided by operating activities by $0.8 million for the thirteen weeks ended May 1, 2010 as compared to the thirteen weeks ended May 2, 2009. These increases were offset by a cash usage of approximately $1.3 million in other working capital components versus the comparable prior year period.
For the thirteen weeks ended May 1, 2010 capital expenditures, net of tenant allowances and proceeds from the sale of property and equipment increased $0.8 million as compared to the thirteen weeks ended May 2, 2009. During the thirteen weeks ended May 1, 2010, we opened 31 new stores and converted 13 existing stores as compared to 31 new stores and 9 conversions in the thirteen weeks ended May 2, 2009, respectively. Capital expenditures for the new stores and conversions of existing stores increased $0.7 million to $3.1 million during the thirteen weeks ended May 1, 2010 as compared to $2.4 million in the comparable prior year period. Additionally, the expansion of the distribution center accounted for $0.5 million of the increase during the thirteen weeks ended May 1, 2010. These increases were offset by lower capital expenditures for information technology of $0.6 million versus the comparable prior year period.
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