) reported a 2.7% decline in second quarter same-store sales, which was better than expected. In response, USB Piper Jaffray raised its earnings estimates and reiterated its strong buy rating on the stock.
Analyst Brent Rystrom said that the retailer reported remarkably strong 2Q comps, which was considerately better than his 10% decline estimate. He notes that the company sees gross margin estimates better than planned, near 35.5% for the quarter. He says its new distribution center in Briar Creek, Pennsylvania is opening six months early. He raised his EPS estimates from $1.05 to $1.12 for FY 2001, and from $1.30 to $1.34 for FY 2002. He increased his $31.50 12-month price target to $36.50.