Vans, Inc. said it expects diluted earnings per share from continuing operations for the first quarter of fiscal 2004 to be approximately $0.15 to $0.18 above its previous guidance of $0.58 for the base business (excluding skateparks expected to be closed).
Vans stated that approximately $0.11 of the anticipated $0.15 to $0.18 increase is due to a lower effective tax rate in the first quarter that is expected to be largely offset by a higher effective tax rate over the remaining three quarters of fiscal 2004.
Excluding this timing difference in the Company's tax expense, the first quarter's results are expected to be approximately $0.04 to $0.07 above previous guidance.
On a GAAP basis, the Company now expects diluted earnings per share from continuing operations of approximately $0.61 to $0.64, compared to previous guidance of $0.33 to $0.48.
“We are very pleased with our back-to-school performance,” said Gary H. Schoenfeld, President and Chief Executive Officer. “We achieved strong sell-throughs at many of our U.S. wholesale accounts and a 13.7% comp store gain in our Vans retail stores, which along with increased margins in our international business, fueled by favorable exchange rates, has resulted in a substantial increase in overall profitability for the base business”.
In the first quarter of fiscal 2003, the Company had diluted earnings per share from continuing operations of $0.31 on a GAAP basis and $0.31 on a non-GAAP basis for the base business.
For the full fiscal year 2004, the Company has revised its non-GAAP guidance for the base business to approximately $0.47 to $0.52 diluted earnings per share compared to its previous guidance of $0.35 to $0.40.
On a GAAP basis, the Company anticipates diluted earnings per share from continuing operations for the year to be approximately $0.25 to $0.35, versus previous guidance of approximately break even.
