Too Inc. (Columbus, Ohio) said that based on sales results for the nine-week period ended Jan. 5, 2002, it expects to report fourth quarter earnings of approximately $0.76 per diluted share (up from $0.66 a year ago) despite an estimated 1 to 2 percent decline in same-store sales for the period.
“Well-managed inventories, improved merchandise margins and control of expenses will be important factors in the earnings improvement,” said Too, Inc. chairman and ceo Michael Rayden.
The company also said that while lower-than-expected mall traffic affected comparable store sales during the holiday shopping season, late December and early January sales have shown a marked improvement. The company added that it is extremely pleased with pre-season sales of spring merchandise.
Store growth plans for 2002 include opening 50 to 55 new Limited Too stores and four new mishmash stores in spring. The company said it continues to enjoy lower-than-average construction costs for new Limited Too stores, along with a higher average after-tax cash return on investment in those new stores.
The retailer will also mail eight editions of its catalog — with an estimated 35-40 million circulation — to coincide with what it regards as key tween shopping periods during the year. It will also issue its first swimwear direct mail promotion in May.
Limited Too currently operates 462 stores in 46 states, plus its recently launched new specialty retail concept, mishmash, targeted toward young women 14 to 19 years of age.