West Marine sees big earnings drop
WATSONVILLE, Calif. – Boating supplies retailer West Marine, Inc. (Nasdaq:WMAR) is sounding a positive note, touting its sales increase during the third quarter, despite a dramatic drop in earnings, compared to last year.
Net income for the thirteen weeks ended September 30 was $0.4 million, or $0.02 per share, including a $1.5 million pre-tax, or $0.04 per share after-tax, charge for store closing costs, compared to net income of $2.0 million, or $0.09 per share, for the same period last year.
Net income for the 39 weeks ended September 30 was $5.0 million, or $0.24 per share, including a $5.1 million pre-tax, or $0.15 per share after-tax, charge for store closing costs, compared to net income of $19.3 million, or $0.90 per share, for the same period last year.
As reported earlier this month, net sales for the 13 weeks ended September 30 were $195.6 million, an increase of 3.7 percent from net sales of $188.6 million for the same period a year ago. Comparable store sales increased 2.4 percent for the 13 weeks ended September 30.
Net sales for the 39 weeks ended September 30 were $592.8 million, an increase of 4.5 percent from net sales of $567.5 million for the same period a year ago. Comparable store sales increased 2.8 percent for the 39 weeks ended September 30.
“During our third quarter, we experienced positive results from a series of changes we are making in our business,” commented West Marine CEO Peter Harris. “Our store sales in most areas benefited from new selling and merchandising initiatives, especially in the boating lifestyle categories, and our gross margin, excluding capitalized indirect costs, showed improvement. In addition, our store closing program is proceeding on track and our cost structure has been reduced.”
Harris continued, “We remain cautious with regard to the boating supply retail environment. However, offering improved assortments of merchandise to our customers and providing them with better than expected service are the foundation of our growth strategy as we prepare for the upcoming year.”
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