Quarterly Net Income Growth
Net income for the 13-week fourth quarter was $80.8M, or $1.59 per diluted share, up from $77.2M, or $1.53 per share the prior-year quarter (≈+4.7% in net income; +3.9% in EPS).
Full-Year Net Income and EPS Improvement
Net income for the 52-week fiscal year was $209.7M, or $4.14 per diluted share, versus $195.5M, or $3.89 per share prior year (net income ≈+7.3%; EPS ≈+6.4%).
Sales and Comparable Store Sales Strength
Q4 net sales increased 5.3% to $399.1M (from $379.2M). Comparable store sales rose 3.9% in Q4 and improved 5.6% for the full fiscal year.
Robust Online Growth
Online sales increased 6.4% in the quarter to $74.2M and were up 9.8% for the full year to $217.1M, showing continued digital channel momentum.
Gross Margin Expansion (Full Year)
Full-year gross margin improved to 49.0% from 48.7% a year ago (+30 basis points), driven by a 20 basis point increase in merchandise margins and 10 basis points of leverage in buying, distribution, and occupancy expenses.
Operating Margin and SG&A Discipline (Full Year)
Full-year operating margin increased to 20.2% from 19.8% (+40 basis points). Full-year SG&A was stable at 28.8% of net sales versus 28.9% last year, indicating tight expense control.
Strong Cash Position and Shareholder Returns
The company held $306.6M in cash and investments at year-end after paying $225.1M in dividends during the year, reflecting healthy liquidity and capital return to shareholders.
Women's and Kids Businesses Driving Growth
Women's merchandise sales grew ~12% in Q4 (fifth consecutive quarter of double-digit growth); women's mix increased to ~46% of sales (from 43%). Women's denim +10.5% with AUR rising from $83.10 to $90.20 (~+8.5%). Kids business grew ~16% year-over-year.
Inventory Investment to Support Demand
Inventory increased 15.5% year-over-year to $139.5M, reflecting planned increases—particularly in denim—to meet heightened demand, sizing, and inseam needs.
Store Expansion and Capital Investment
Company opened 6 new stores and completed 20 full remodels during the year (with 7 closures). Plans for fiscal 2026 call for opening 12–14 new stores and completing 12–14 remodels; full-year capital expenditures were $45.4M, with $40.7M for new store construction, remodels, and technology.