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PUMA
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By
Reuters
Published
Jan 6, 2010
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Rue21 raises outlook for fourth quarter '09

By
Reuters
Published
Jan 6, 2010

Jan 6 (Reuters) - Youth apparel retailer rue21 Inc (RUE.O) raised its fourth-quarter outlook, citing stronger-than-expected total sales and gross margin.


Photo: www.rue21.com

Rue21, which went public in November 2009, expects earnings for the fourth quarter ending Jan. 30 to be between 28 cents and 30 cents a share, up from its previous range of 17 cents to 20 cents a share.

The Warrendale, Pennsylvania-based retailer sees total sales growth for the quarter to be in the range of 26 percent to 28 percent, compared with its previous outlook of a growth in the low-20s range.

Comparable-store sales for the fourth quarter are expected to increase in the mid-single digits on top of an increase of 11.2 percent for fourth quarter of fiscal 2008, the company said in a statement.

"We are now shifting our focus to 2010 and our goal of opening 100 stores as we continue with our long-term growth plans," Chief Executive Bob Fisch said.

The company's shares, which have risen about 23 percent since their debut on Nasdaq on Nov. 13, were trading up about 2 percent after the bell at $30. They closed at $29.55. (Reporting by Fareha Khan in Bangalore; Editing by Aradhana Aravindan)

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