West Marine revenues down only 5 percent

WATSONVILLE, Calif. – Boating supplies retailer West Marine, Inc. generated (Nasdaq:WMAR) net revenues of $215.4 million during the thirteen weeks ended July 4, a decrease of $11.3 million, or 5.0 percent, from net revenues of $226.7 million a year ago, it reported in a statement yesterday.

This was primarily driven by store closures in 2008 and the first six months of 2009, which accounted for $10.5 million of net revenues last year, partially offset by $6.2 million of net revenues from new stores, the company stated.

Comparable store sales decreased by $2.0 million or 1.0 percent, according to West Marine. Comparable store sales for the second quarter benefited by $8.4 million, or 4.2 percent, because the 53 weeks in fiscal 2008 resulted in a favorable fiscal calendar shift. West Marine’s sales typically build week-over-week leading up to the peak of boating season, and the fiscal calendar shift meant there were more peak season days in the second quarter of this year, which benefited comparable store sales, the company explained. In addition to the calendar shift impact, the Fourth of July holiday moved from the third fiscal quarter in 2008 to the second fiscal quarter in 2009.

“We are pleased that sales in the second quarter exceeded our plans,” said Geoff Eisenberg, CEO of West Marine. “While the sale of new boats has continued to be soft and the areas of our business that support that industry segment continue to suffer, we have benefited from an increase in boat usage in some markets, a shift towards more ‘Do it Yourself’ purchases given the current economic environment, and a positive reaction to our focus on core boating parts and accessories in support of these trends. We have also benefited from changes in the competitive landscape as well as our ability to fund inventory investments while some others in our industry have not had that flexibility.”

Eisenberg also acknowledged “associates’ reinvigorated commitment to serving customers and maximizing sales opportunities” and the “very good” performance of the two new flagship prototype stores opened earlier in the year.

“…this continues to validate our strategies around real estate optimization and merchandise assortments,” he added.

Net revenues in the stores segment for second quarter of 2009 were $194.7 million, a decrease of $5.0 million, or 2.5 percent, compared to same period last year. The revenue decrease was primarily driven by store closures in 2008 and the first six months of 2009, which stores accounted for $10.3 million of net revenues last year, partially offset by a $6.2 million of net revenues from new stores, with comparable store sales decreasing by $2.0 million, West Marine reported.

Port Supply (wholesale) segment revenues through the distribution centers for the second quarter of 2009 were $8.9 million, a decrease of $3.9 million, or 30.5 percent, compared to the same period last year.

Net revenues in the Direct Sales segment for the second quarter of 2009 were $11.8 million, a decrease of $2.5 million, or 17.2 percent, compared to same period last year, according to the company.

Net sales for the twenty-six weeks ended July 4, 2009 were $316.3 million, a decrease of $23.6 million, or 6.9 percent, from net sales of $339.9 million for the same period a year ago, primarily due to stores that were closed in 2008 and the first six months of 2009, which stores accounted for $14.6 million in net revenues last year, and a $8.1 million decrease in comparable store sales, West Marine reported. New stores partially offset the sales declines, with an impact of $7.9 million.

Comparable store sales for the twenty-six weeks ended July 4 decreased 2.9 percent. Comparable store sales for the first half of 2009 benefited by $13.3 million, or 4.4 percent, primarily because of the fiscal calendar shift, the company explained.

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