Sales Surge at Body Central

Body Central Corp. (BODY - Snapshot Report) reported net sales of $80.7 million in the fourth quarter of 2011, up 22.0% year over year. Total revenue surpassed the company’s guided range of $75 to $79 million. The company’s same-store sales and comparable store sales (comps) also rose a respective 21% and 7% in the same period.

Quarterly sales were positively impacted by the introduction of gift cards. Sales also benefited from the continued focus on offering latest trends at value prices. New stores as well as e-commerce business also drove the company’s sales growth.  

For the full year, sales increased 22% to $296.5 million. Store sales were also up 25% to $261.9 million backed by an 11% lift in comps. The company expanded its store count by 15% in fiscal 2011 compared to the prior year.

Based on the sales results in the fourth quarter, Body Central now expects EPS in the range of 36 cents to 37 cents in the fourth quarter, and $1.21 to $1.22 for fiscal 2011, both at the high end of the previous guidance range.

The Zacks Consensus earnings estimates for the fourth quarter and fiscal 2011 are pegged at 37 cents and $1.22, representing a year-over-year growth of 48.7% and 49.0%, respectively.  

Body Central’s comps momentum has been solid for quite some time. In the third quarter of 2011, Body Central’s net revenue grew 18% driven by comparable store sales increase of 8% while its net income skyrocketed 123% year over year. The multi-channel, specialty retailer selling quality apparel and accessories ended the third quarter with cash balance of $31.7 million and no long-term debt, thus reflecting a sound financial condition.

The company is further taking up a slew of initiatives like installation of a new loss prevention system in the first quarter of 2012 and implementation of merchandise allocation system. The project will be operational in the first half of 2012. Additionally, the company will add handheld scanners to all stores in 2012. Body Central is also favorably placed with respect to inventory to start the cold weather in the new year.

Body Central, which competes with Genesco Inc. (GCO - Snapshot Report), currently retains a Zacks #2 Rank, which translates into a short-term Buy rating. We are also maintaining our long-term Neutral recommendation on the stock.

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