$.51 vs $.47 adjusted for currency. gross profit margins down. Same store sales growth looks like 18-20% on many more members. Only one new store in quarter vs last year. As long as sales and store openings proceed as planned we are in for a great ride. The 5 new stores this year should give us 30% growth. Costs may be tricky on all these stores but in the long run they will average out.
We just went through this last quarter and earnings were down. At least they are up 10% pre-currency. Each store adds $.08 to earnings so two stores adds 8% to eps growth. That plus same store sames gets us 25% growth. The stores are only 2 years old on average so same store sales growth can go on for awhile. They just entered South America. In they are successful, they could easily triple the store base.
So much growth puts a lot of pressure on margins. I remember having talked to the CEO of a retail furniture stores chain, he said to me that new stores cost a lot at the beginning. Well, we don't have much new stores, but when you talk about +20% sales growth, it's enormous and, I guess, not easy to manage. We'll come to that; meanwhile, the stock will be under pressure, but it will come back strong in a few quarters. Let's be patient.