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Our adjusted SG rate as a percentage of sales decreased 70 basis points to 21.1% due to leverage in store, marketing mulberry handbag sale and IT expenses. This was partially offset by additional spending on preopening expense to support some of our larger new stores opening in the first half of 2012. Our strong sales growth combined with SG leverage resulted in a 20% increase in adjusted operating profit to $37.6 million or 7.3% of sales of the fourth quarter..

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