Affirms Second Quarter Guidance;
Comments on Capital Planning Process
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"E-commerce sales declined 5% in June compared to a 17% decrease for the prior year month. June represented the anniversary of our strategic efforts to transition to a higher penetration of full-price selling and better align e-commerce merchandising with our stores. We expect continued stabilization in our e-commerce sales going forward."
Ms. McGalla concluded, "We continue to expect a fiscal second quarter
net loss in the range of
The Company also announced today that its Board of Directors is conducting a capital planning review that will include an analysis of the Company's cash position. The Company regularly conducts such reviews. The Board intends to retain an investment banking firm to assist in its evaluation, as it has done at times in the past.
The Company is announcing the current capital planning review due to multiple recent stockholder inquiries as to the Company's capital plans. The Board's capital planning process includes consideration of all factors relevant to the Company's capital and cash requirements, including projected Company cash levels, Company operating performance, market trading prices and economic trends. There can be no assurance as to the determination to be made by the Board. The Company does not intend to comment further about its capital planning conclusions until the Board's analysis is complete and it has made a determination, at which time the Company will make a public announcement.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995: This news release contains forward-looking statements as that
term is defined in the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include, but are not limited to,
statements that relate to the Company's guidance for its second quarter
of fiscal 2012, its expected e-commerce sales trend stabilization, and
its capital planning review, as well as the intent, belief, plans or
expectations of the Company or its management. All forward-looking
statements made by the Company involve material risks and uncertainties
and are subject to change based on factors beyond the Company's control.
Accordingly, the Company's future performance and financial results may
differ materially from those expressed or implied in any such
forward-looking statements. Such factors include, but are not limited
to, those described in the Company's filings with the
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