Home and related appliances retailer Sears Hometown and Outlet Stores Inc. (SHOS: Quote) reported that its fourth-quarter net income increased to $9.66 million or $0.42 per share, from $7.90 million or $0.34 per share in the same quarter last year.
Operating income increased to $17.3 million in the fourth quarter of 2012 compared to $12.3 million in the fourth quarter of 2011. The $5.0 million increase was primarily due to higher sales and a higher gross margin rate partially offset by higher selling and administrative expenses. The estimated impact of the 53rd week on operating income was $3.1 million.
Net sales in the fourth quarter of 2012 increased $40.1 million, or 6.8%, to $631.2 million from the fourth quarter of 2011. The increase in Net sales was primarily due to sales of $36.5 million in the 53rd week. Comparable store sales declined 0.5% in the fourth quarter of 2012 compared to the fourth quarter of 2011 with a 0.8% increase in Hometown and a 4.8% decrease in Outlet.
Excluding consumer electronics, comparable stores sales increased by 1.1% overall and increased 2.6% in Hometown. Comparable store sales in Outlet were negatively impacted in the quarter by the level and mix of inventories in appliances, especially in the high value refrigeration product lines.
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by RTT Staff Writer
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