For the nine months ended September 30, 2006, The Athlete's Foot generated revenues of approximately $6.8 million for an increase of 3.7% over the same period of the prior year.
Comp sales for the six months ended June 30, 2006, which are based upon available information as reported by the Athlete's Foot franchisees, are up 4.7% with domestic stores up 0.5% and international stores up 8.5%.
Average annual revenues for individual franchised stores operating at least twelve months are $860,000 and $450,000 for domestic and international locations, respectively.
For the full year of 2006, revenues are expected to range from $9.6 million to $9.8 million, an increase of 4% to 6% over the prior year. For the full year of 2007, revenues are expected to be in the range from $10.7 million to $11.2 million, an increase of approximately 12% to 15% over 2006.
The Athlete's Foot is expected to contribute incremental net income to NexCen of $3.8 million to $4 million or 8 cents per share for the full year of 2007.
NexCen is also looking at aggressively expanding TAF over the next several years. The franchise has a backlog of 260 potential new stores in the pipeline over that has accumulated as a result of its inability to sell franchises in most of 2005, which lagged into 2006.
As a result, The Athlete's Foot is expecting to open approximately 90 new stores in 2006 and 110 stores in 2007 which would bring the total store count to approximately 700 by year end 2007. Total system wide store sales are expected to be approximately $360 million for the full year of 2006, and to increase approximately 11% to $400 million in 2007.
