Global X Funds Global X Msci Ch (NYSE:CHIC)

John D. Goodman, Chief Executive Officer, stated, “During the third quarter, we continued to make progress with our strategic and operational initiatives, which resulted in reduced markdown levels and improved gross profits versus a year ago. The strength of gross margin, combined with prudent cost controls, enabled us to deliver higher than anticipated non-GAAP diluted earnings per share of $0.33.

^a The above forecasts reflect the Company's current and preliminary views and are therefore subject to change. Please refer to the Company's Safe Harbor Statement (usually in press releases) for the factors that could cause actual results to differ materially from those contained in any forward-looking statement.

^b Non-GAAP EPS figures generally exclude certain non-operating gains and losses as well as certain non-cash items. Non-GAAP information should not be viewed in isolation or as a substitute for reported, or GAAP information . For a more complete explanation of the company's definition of non-GAAP please refer to its financial press releases. The GeoTeam® non-GAAP figures may, from time to time, differ from company supplied figures.

 

“While we are encouraged by the progress we are making, we recognize the environment makes our task particularly challenging. We are remaining focused on our core strategies and are committed to maintaining financial discipline. We expect to build momentum in the coming quarters and look forward to generating further improvement during the remainder of the year. We’re in a strong financial position, with $51 million of cash and no debt, affording us the financial flexibility to pursue our plans and create long-term shareholder value.”

For the third quarter of fiscal 2009, the Company expects comparable store sales to be in the negative low-single to positive low-single digit range versus a comparable store sales decline of 6.5% in the third quarter of fiscal 2008.

^a The above forecasts reflect the Company's current and preliminary views and are therefore subject to change. Please refer to the Company's Safe Harbor Statement (usually in press releases) for the factors that could cause actual results to differ materially from those contained in any forward-looking statement.

^b Non-GAAP EPS figures generally exclude certain non-operating gains and losses as well as certain non-cash items. Non-GAAP information should not be viewed in isolation or as a substitute for reported, or GAAP information . For a more complete explanation of the company's definition of non-GAAP please refer to its financial press releases. The GeoTeam® non-GAAP figures may, from time to time, differ from company supplied figures.

Guidance Update:

Management expects sales trends to remain soft during the second quarter of fiscal 2009, reflecting the macro environment, the Easter shift and the seasonality of the Company’s business model. Comparable store sales are expected to be in the negative mid- to high-single digits, and net loss per diluted share is expected to be in the range of $0.10 to $0.20, exclusive of transition costs.

 Management believes the strategic and operating initiatives being implemented by the new leadership team will have a positive impact on the business in the second half of fiscal 2009. The Company has reduced its new store opening and capital expenditure plans to 20 locations and $30 million, respectively, in fiscal 2009.

Source: Business Wire (January 21, 2009)