A continued focus on its core high-definition-ready, big-screen television category helped specialty retailer Rex Stores boost net income in its fiscal fourth quarter and 12 months, even though overall sales for both periods showed decreases.
Rex sales in the fourth quarter, ended Jan. 31, dropped 8 percent to $134 million, down from $146.3 million in the year-ago period. Comp-store sales for the three months decreased 7 percent.
On the other hand, fourth quarter net income soared 88 percent, reaching $17.1 million, up from $9.1 million in the same quarter a year earlier.
For the 12 months, sales fell 3 percent, down to $417.4 million from $428.6 million. Comp-store sales dipped 1 percent.
Net income for the 12 months rose 20 percent, hitting $27.4 million, compared with $22.9 million in the previous year.
Gains in the retailer's fiscal fourth quarter net income also reflect investment income from a synthetic fuel limited partnership, as well as a $5.2 million income tax benefit due to the favorable completion of an Internal Revenue Service audit of one of the company's limited partnerships.