Bombay's year a 'disappointment'
By Furniture Today Staff -- Furniture Today, March 17, 2002
FORT WORTH, Texas — Carmie Mehrlander, chaiman and chief executive officer of The Bombay Company, called 2001 an "overall disappointment," but cited progress in inventory management and the strength of its balance sheet. The specialty retail chain was buffeted by the weak economic climate and the impact of the Sept. 11 terrorist attacks, she said.
Fourth quarter sales were $152.5 million, down 3% from last year's $157.3 million in the final quarter. Profits for the quarter were $11.7 million, off 10.1% from the $13 million earned a year ago.
Sales for the year were up 3.3% to $437.5 million from last year's $423.5 million. Net income for the year was off 56.9% to $3.7 million from $8.6 million in 2000.
Same-store sales were off 6% for the quarter and 2% for the year.
Both the fourth quarter and the year 2001 were at a disadvantage compared with the year-earlier periods, because 2000's fourth quarter and year were 14 and 53 weeks long, respectively, one week longer than the 2001 periods.
Furniture sales dipped 2% for the year, but the company said accessories were a bright spot. Bombay plans to reduce the number of large furniture pieces it carries, placing more emphasis on small accent furniture.
The company reduced inventory by nearly 15% for the year, and increased cash and short-term investments to more than $38 million from $22.2 million a year ago. The company remains debt free.
Bombay also operates a wholesaler, Bailey Street Trading Company, whose sales Mehrlander expects to be about $5 million in the coming year and believes it can be "a $50 million business within the next five years."
Looking ahead, Bombay plans to move from room settings on its floors to groupings of product by type. Groups will include bedroom, living room, dining room and home office.
During the year, Bombay opened 32 stores, converted 18 stores to its larger format and closed 21 sites. Bombay operates 419 stores. In the coming year, the company plans to open 20 to 25 stores, shutter seven and convert four to six to large-format stores.
Bombay will test its first Kids store in March in Dallas and expects to open a total of six Kids stores by the end of the fiscal year.
In the coming fiscal year, Bombay expects sales to be in the range of $470 million to $475 million, with earnings per share of 16 to 20 cents. First quarter sales are expected to be in the range of $89 million to $92 million, with a loss per share of 12 to 14 cents.
| Quarter ended 2/2 | 2002 | 2001 | Change |
|---|---|---|---|
| Sales | $152,506,000 | $157,285,000 | (3.0%) |
| Operating income | 18,983,000 | 21,552,000 | (11.9%) |
| Net income | 11,673,000 | 12,991,000 | (10.1%) |
| Earnings per share | 0.35 | 0.40 | (12.5%) |
| Year ended 2/2 | 2002 | 2001 | Change |
| Sales | $437,457,000 | $423,459,000 | 3.3% |
| Operating income | 6,384,000 | 13,857,000 | (53.9%) |
| Net income | 3,724,000 | 8,645,000 | (56.9%) |
| Earnings per share | 0.11 | 0.26 | (57.7%) |
| (a) The 2001 quarter is 13 weeks; the 2000 quarter is 14 weeks. The 2001 year is 52 weeks; the 2000 year is 53 weeks. | |||
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