Rue21 Q2 profit soars 20%

Warrendale, Pa. -- Rue21 reported Wednesday that net income for the quarter ended July 30 rose 20% to $7.7 million, from $6.4 million a year earlier. Revenue surged 21% to $172.8 million, topping Wall Street expectations.

Same-store sales for the period for flat, and the teen retailer said it faced dwindling inventory on summer merchandise, which it plans to remedy in the 2012 summer shopping season.

During the second quarter, Rue21 opened 34 stores, closed one and converted 14 to the larger rue21 etc! format.