EmailBody Central (BODY $10.22 -5.84) issued downside guidance for the second quarter with EPS of $0.19-0.21 versus the $0.27 Capital IQ consensus and revenues of $77-79 million versus the $81.96 million consensus; comps -7 to -9%. The company issues downside and lowered guidance for fiscal year 2012 with EPS to $1.07-1.11 from $1.34-1.38 versus the $1.35 consensus and revenues to $323-328 million from $333-337 million versus the $335.42 million consensus with comps -4 to -6%.
"Our second quarter comparable sales remain soft and have not improved since April. We continue to diligently manage inventory and to take aggressive markdowns on slow moving items. As a result, we now expect second quarter sales and gross margin to be lower than contemplated in our May 3rd release. We now believe the recent sales trends will continue into the third quarter with some impact to gross margin. We expect sales to improve in the fourth quarter as we receive new Fall and holiday assortments. Based on these trends and expectations, we have lowered our second half sales plan and revised guidance down accordingly. We continue to believe that we have a compelling business model and are actively working to address near-term sales challenges and get our business back on track."
