Results in the final quarter were in-line with the guidance provided in Jan., with net income dropping 91% to $1,728,000 from $19,906,000 on 13% lower revenues of $238,312,000 against $273,357,000, including a -13.2% comp. Transactions were down high-single digits with average ticket off mid singles. The quarter was going well until Dec., when inflation pushed down consumer’s enthusiasm for Holiday shopping.

Gross margin decreased 420 basis points to 33.5%, including 129 b.p. lower merchandise margins plus higher store occupancy and distribution expense, and costs capitalized into inventory. SG&A was 2% higher due ... Log in to view full article.