Overall we are very pleased with our full year results. Our comparable store sales increased by 7.4% on a 52 week basis and our total revenue was up 14% to $857 million. Both our gross margins and operating margins expanded by approximately 100 basis points year over year and our reported EPS for the full year was $1.52 compared with $1.03 in fiscal 2010. We made strategic investments in our stores and e-commerce which allowed us to accelerate our growth while simultaneously repaying all our bank debt. We continue to take pride in our ability to execute as a team and deliver consistent results; and we are excited about the opportunities for us to bring products to our customers in additional markets, supporting their health and wellness needs.
We plan to extend our growth by continuing to expand our US store base with 52 new locations in 2012. Of the 52 stores, we plan to open two in smaller markets. Our small market test will be a store that is about 20% smaller than our current model with approximately the same assortment and the same knowledgeable service levels. With lower rent and less capital we believe we can bring the same Vitamin Shoppe experience to customers in markets that could not effectively be reached with our current prototype while at the same time achieving the same financial returns. If successful, this will extend our growth opportunity beyond the current estimate of 900 stores in the US market.
Our online business is an extension of our brand and is an important growth vehicle. In 2011 we increased our investment in people and systems to improve our customers' shopping experience and accelerate our sales growth. In 2012 we will continue to invest in technology, people and supply chain to further improve our customer's experience. Our goal is to drive profitable online sales growth and use our internet platform to support the total customer experience at Vitamin Shoppe.
In 2011 we launched our first sub brand True Athlete®. This product line was designed for the fitness enthusiast with a passion for natural products: True Athlete is formulated with no artificial colors, flavors or sweeteners and is NSF® Certified for Sport, minimizing the risk of unwanted contaminants. We also added probiotics to the formula to help with digestion of the protein. The product was launched with a multi pronged marketing plan which included a micro website and a direct mail campaign. Product samples were sent to targeted customers and we worked with local organizations to introduce the product to different sports teams. Sales were double our initial expectations. We plan to build on the success of True Athlete by extending the product line and developing additional sub brands where we see an opportunity to deliver an unmet need to our customers.
Finally, we plan to enter the Canadian supplement market in 2013 with two stores. We will spend most of 2012 laying the foundation for our international expansion. We are focused on addressing the different regulations around supplements in Canada along with determining the best approach to distribute products in the country. This is a significant undertaking for the organization, so we will go slowly.
We are excited about the strength of our core business, the growth that lies ahead, and our strong financial position. We are confident that we are working on the right things to continue our trend of executing well and delivering consistent results. Our investments in new stores, the internet, product development and Canada should enable us to continue to exceed our customers' expectations. In doing so, we will continue to build shareholder value.
With 2011 behind us, we are focused on 2012 and on achieving the results we've laid out as our goals:
As I think about the business going forward, it is not without its challenges. Opening 52 stores is a large undertaking and finding qualified Health Enthusiasts to run those stores requires great discipline from our Human Resources and Store Operations teams. We continue to work hard to promote new store managers from within the organization. In addition, our capital requirements are growing as we grow. In 2012 our supply chain team will be focused to a great extent on opening our second distribution center in the Southeast. This distribution center will support our continued store growth, and will be the biggest project our supply chain team has taken on over the last few years. Finally, we continue to manage through cost increases in fuel and raw ingredients from suppliers.
We enter 2012 well positioned. We are confident in our ability to execute against our plans and are excited about the many opportunities that lie ahead.
Success in all areas- our stores, e-commerce and distribution depends on outstanding people. Our Health Enthusiasts represent one of the keys to our success and I want to acknowledge the role of all the Vitamin Shoppe team members who work hard every day to build our business. Our Health Enthusiasts are passionate about our customers and are dedicated to supporting them with the product knowledge to meet their health and wellness needs.
We look forward to delivering another year of strong growth in 2012 and remain confident in our ability to achieve consistent and sustainable growth in the years ahead.
Sincerely,
Tony Truesdale
CEO and Chief Health Enthusiast