West Marine, Inc. Wednesday reported financial results for the first quarter ended April 1, 2017. First quarter 2017 net revenues were $129.1 million, a decrease of 1.0 percent compared to the same period last year. Comparable store sales were flat.
Pre-tax loss was $12.1 million, compared to pre-tax loss of $15.2 million last year in the same period. Loss per share was $0.29 per share compared with $0.37 per share in the same period last year.
Matt Hyde, CEO of West Marine, commented: “We are pleased that the improvements in our cost structure and our strategies are resulting in solid bottom-line gains. Despite the challenging weather and retail environment in the quarter, we’ve maintained our comparable store sales and improved gross margins over last year.”
Further Progress on Growth Strategies
- Sales from eCommerce increased by 9.5 percent compared to the first quarter of 2016 and represented 13.2 percent of total sales, compared to 11.9 percent for the same period last year, showing progress towards the goal of 15 percent of total sales.
- Sales in merchandise expansion product lines, which include footwear, apparel, clothing accessories, fishing products and paddlesports equipment, increased slightly, while core product sales were down 0.8 percent, compared to the same period last year.
Results for the First Quarter of 2017
Net revenues for the quarter ended April 1, 2017, decreased by $1.3 million, or 1.0 percent, to $129.1 million compared to $130.4 million for the quarter ended April 2, 2016.
Gross margin improved to 25.5 percent of net revenues, compared to 25.2 percent during the same period in 2016. Selling, general and administrative expense decreased year-over-year by $3.2 million.
Net loss for the first quarter was $7.3 million, or $0.29 per share, compared to net loss of $9.1 million, or $0.37 per share, for the first quarter of 2016.
Inventory at the end of the first quarter was down $11.2 million compared to the same period in 2016. As of April 1, 2017, the company had cash and cash equivalents totaling $47.0 million compared to $22.4 million at the same point in 2016.
Based on information available as of today, the company reiterated its most recently issued full-year 2017 pre-tax income guidance of $13 to $16 million on comparable store sales increases of 1 to 2 percent for the full year. Total fiscal year revenue is projected to be $707 to $715 million.