They were looking for a loss of 11-16 cents and came in at 8. SSS were also above the high end of guidance. By the end of the year they will close a bunch of underperforming stores and performance will accelerate.
This is what they guided for-
I will now shift gears and talk about the financial outlook for the second quarter. Our sales comp guidance for Q2 is a negative 1% to a plus 4%. We are targeting our gross margin rate, including buying, occupancy and distribution costs to be in the range of 24% to 26% versus 24% in Q2 of last year.
We expect SG&A expenses to be in the range of $62 million to $64 million. Assuming a normalized annual income tax rate of approximately 37%, this translates to a non-GAAP net loss from continuing operations of $0.11 to $0.16 per share for the quarter, compared with a net loss from continuing operations of $0.17 per share last year.