Sales dip below West Marine’s expectations
WATSONVILLE, Calif. – Four quarter sales at boating supplies retailer West Marine, Inc. (Nasdaq:WMAR) didn’t meet the company’s expectations, according to a statement it made earlier this week.
West Marine reported net sales for the thirteen weeks ended Dec. 29 of $117.8 million, a decrease of $6.0 million, or 4.9 percent, from net sales of $123.8 million a year ago, primarily due to a $4.2 million decrease in sales attributable to closed stores and a $2.9 million decrease in comparable store sales, the company reported. Comparable store sales for the fourth quarter decreased 3.0 percent.
Net sales for the fifty-two weeks ended Dec. 29 were $679.1 million, a decrease of $37.5 million, or 5.2 percent, from net sales of $716.6 million a year ago, primarily due to a $28.6 million sales decrease attributable to closed stores and a $11.4 million decrease in comparable store sales, West Marine stated. Comparable store sales for fiscal year 2007 do not include net sales of $6.1 million from new stores and $6.8 million from stores remodeled or expanded during the year. Comparable store sales for 2007 decreased 1.9 percent.
Net sales in the Stores segment for fiscal year 2007 were $593.8 million, a decrease of $36.1 million, or 5.7 percent, compared to fiscal year 2006. The sales decrease primarily was due to a $23.1 million decrease attributable to closed stores and a $11.4 million decrease in comparable store sales, according to West Marine. Port Supply (wholesale) segment sales through the distribution centers for 2007 were $41.6 million, a decrease of $2.0 million, or 4.5 percent, compared to 2006. Port Supply sales to wholesale customers through store locations are included in the Stores segment. Net sales in the Direct Sales segment for 2007 were $43.8 million, an increase of $0.6 million, or 1.3 percent, compared to 2006.
“Overall sales levels in the fourth quarter were modestly below our expectations,” said Geoff Eisenberg, West Marine’s new CEO. “In particular, the southeast has remained soft, continuing the trends we have seen for most of the year. Weakness in several core merchandise categories was partly offset by strength in electronics, which reflected increased promotional activity as we responded to marketplace conditions.”
West Marine also reported certain significant events expected to impact fourth quarter and fiscal year 2007 results, as follows:
In addition to these significant events, lower sales during the fourth quarter are expected to result in operating earnings modestly lower than our previous expectations for 2007, according to the company.
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