West Marine's Q1 loss narrows to US$8.9m from US$15.7m a year ago
By IBI Magazine
West Marine today reported net sales of US$109.6m for its first quarter ended April 3, 2010, up 8.6 per cent compared to the same period a year ago. Same-store sales rose by 8.4 per cent. Its net loss narrowed to US$8.9m compared to US$15.4m a year ago. "While we have always reported a loss in the first quarter due to seasonality in our business, we once again showed strong year-over-year operating performance," said Geoff Einsenberg, CEO, in a statement. "In fact, Q1 of 2010 was the sixth consecutive quarter in which we delivered improved operating results versus the corresponding quarter the prior year." Eisenberg said a recovery in demand for "bigger-ticket" products like boats, motors and electronics, and "strong pre-season purchases" of maintenance items drove the growth in sales. "The impact of this robust sales growth is combining with our ongoing efforts to control expenses, allowing us to deliver a significant bottom-line impact," he said. "We continue to focus on supply chain, and have been able to maintain in-stock levels even with the increase in Customer demand." The company said that it increased gross profit by 1.7 per cent because of higher sales, improved inventory shrinkage results and higher product margins. Inventory levels at the end of the quarter decreased by US$14.9m, or 5.8 per cent. West Marine's short-term debt at the end of the quarter was US$39.1m. Its total debt has decreased by US$36.7 million, or 48.4 per cent, from this time last year.
(29 April 2010)
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