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OmniaLuo revises FY 2008 guidance & updates store count

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OmniaLuo Inc, a China-based company engaged in the business of designing, developing, marketing and distributing fine women's apparel under the brand name OMNIALUO, revised its previously issued full year 2008 guidance and also updated its open store count.

OmniaLuo anticipates 2008 revenue of approximately $12.0 million, net income of approximately $2.5 million and earnings per share of approximately $0.11 based on basic shares outstanding of 22.84M.

The reduction in both revenue and net income expectations is almost entirely attributable to the impact of the global economic recession and the presumed temporary but nonetheless marked decrease in Chinese consumer spending, particularly in fourth quarter 2008. As a result of this, the Company was forced to close certain stores that did not make their pre-determined sales requirements.

OmniaLuo deemed this necessary in order to remove non-performers from an otherwise strong network of retail outlets. While formerly on pace to meets its goal of 250 stores by year-end 2008, it became necessary in the fourth quarter to cease pursuit of this goal and trim store count for the good of the Company's long term success.

On November 12, 2008, OmniaLuo reported 245 stores open. It thereafter became strategically necessary to close 5 company-owned stores, 16 co-owned stores and 16 independent distributor stores, or 37 stores in total. As of December 31, 2008, the Company had 208 total stores, including 27 company-owned stores, 31 co-owned stores and 150 independent distributor stores.

Additional stores that did not meet performance requirements in January were subsequently closed. As of January 31, 2009 OmniaLuo had 178 total stores, including 27 company-owned stores, 31 co-owned stores, and 120 independent distributor stores.

"This has been a challenging few months to be sure, but we believe it has ultimately helped us position ourselves for greater long-term health, and both domestic and international growth," affirmed OmniaLuo Chairwoman and CEO Cindy Luo.

"Trying market conditions revealed those stores with poor management or in inopportune locations; with these stores thus exposed and removed we are left with a much stronger retail channel and have gained priceless experience that will make each future store opening the stronger for it. We are prepared to gradually open new stores as the Chinese consumer climate improves. Our total store count goal for 2009 is 200."
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