Net income increased 29.5% to $8,677,000 in the third quarter ended Feb. 2 from $6,699,000 last year on 3.8% higher revenues of $170,612,000, up from $164,317,000 with the missing week this year from the calendar shift. Gross margin decreased by 70 basis points to 30.6% from 31.3% last year, due to a 120 basis point increase in distribution costs primarily due to higher e-commerce shipping costs from e-commerce net sales growth. The cost increase was partially offset by a 20 basis point decrease in occupancy costs and a 20 basis point improvement in product margins.

Comparable store net sales, including e-commerce, ... Log in to view full article.