For the fourth quarter fiscal 2005, the chain posted profit of$145.3 million, or 46 cents per share, compared to $133.9 million,or 41 cents per share, in the fourth quarter of fiscal 2004.Analysts were expecting a per-share profit of 49 cents, accordingto Thomson First Call.

The chain attributed the increase in sales to new stores and oneadditional week in the reporting period. However, the increasedsales were offset by a 1.6% decrease in same-store sales and adecreased gross profit. During the quarter, gross profit was $730.9million or 29.5%, versus $660 million, or 30% of sales, in theprior year quarter. The decrease in the gross profit rate isprimarily attributable to increased markdowns to reduce olderinventory levels; lower mark-ups on receipts in the quarter; highertransportation expenses primarily attributable to increased fuelcosts; and increased inventory shrink.

For the entire fiscal year, net sales were $8.58 billion, anincrease of 12% compared to fiscal 2004, and same-store salesincreased 2%. Net income for fiscal 2005 was also up to $350.2million, or $1.08 per share, from $344.2 million, or $1.04 pershare, in fiscal 2004. Gross profit fell to $2.46 billion, or 28.7%of net sales, compared with $2.26 billion, or 29.5% of net sales,in 2004.