West Marine reports lower sales, profits
By IBI Magazine
West Marine today reported net sales of US$227.7 million for the quarter ended June 28, 2008. That compared to net sales of US$247.1 million for the same period a year ago. Its quarterly net income was US$4.4 million compared to US$20.8 million a year ago. The reported net income included a US$14.6 million non-cash full valuation charge that was required by accounting rules. Same-store sales for the quarter declined by 7.8 per cent. "Our financial results for the second quarter of 2008 reflected the ongoing softness we've seen in boating activity and in the economy in general," said Geoff Eisenberg, CEO, in a statement. "Our (pre-tax, pre-significant event) operating results were relatively good considering our sales shortfall." The company also revised its earnings guidance for the rest of the year from an earnings range of US$0.02 to US$0.09 per share to a revised after-tax loss range of US$0.32 to US$0.42 cents per share. Including business restructuring charges and other one-time charges, West Marine anticipates an after-tax loss of US$1.78 to US$1.88 per share. The company said it expects same-store sales to fall between 7.0 to 8.5 per cent for the year. Sales are expected to range from US$625 million to US$635 million, versus its prior guidance of US$660 million to US$670 million. "We do expect continued softness in our industry in the near term, and we believe the best approach for us is to be conservative in our market outlook, and aggressive in our internal change-management," said Eisenberg in the statement.
(24 July 2008)
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