West Marine reports increase in 3Q revenues

WATSONVILLE, Calif. – Boating supplies retailer West Marine, Inc. (Nasdaq: WMAR) generated net revenues for its 13-week 2010 fiscal third quarter ended Oct. 2 of $172.6 million, an increase of $4.4 million, or 2.6 percent, from net revenues of $168.2 million a year ago, the company reported in a statement yesterday.

Comparable store sales increased 3.7 percent or $5.2 million. Revenues from stores opened during 2009 and the first three quarters of 2010 were $9.2 million. However, the impact of stores closed during these same periods effectively reduced revenues by $8.3 million, according to the company. The majority of the closures occurred in connection with its on-going “real estate optimization” program to evolve into having fewer, larger stores.

“We were quite pleased with our comp store and total revenue increases, especially in light of two challenges we faced during the third quarter; we believe there was a general softening in the boating equipment market after the 4th of July, and we were past the year-over-year positive sales impact of the Boater’s World closure,” said Geoff Eisenberg, West Marine CEO.

Net revenues in the Stores segment for fiscal third quarter of 2010 were $157.5 million, an increase of $6.0 million, or 4 percent, compared to the same period last year.

“A driver of this growth was gains in sales to wholesale customers through our store locations as part of our ongoing efforts to better serve this group, as well as leverage our store facilities,” the company reported. Sales to Port Supply customers through store locations are included in the Stores segment.

West Marine’s Port Supply (wholesale) segment revenues through the distribution centers for fiscal third quarter of 2010 were $6.7 million, a decrease of $0.8 million, or 11.1 percent, compared to the same period last year. Net revenues in the Direct Sales segment for fiscal third quarter of 2010 were $8.4 million, a decrease of $0.8 million, or 8.3 percent, compared to the same period last year.

Net revenues for the 39 weeks ended Oct. 2 were $515.5 million, an increase of $31.0 million, or 6.4 percent, from net revenues of $484.5 million for the same period a year ago, primarily due to a comparable store sales increase of 7.2 percent, or $29.4 million, according to West Marine. There was also $24.1 million in sales from stores opened during 2009 and the first three quarters of 2010. However, stores closed during 2009 and the first three quarters of 2010 effectively reduced net revenues by $21.0 million.

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