Bombay 2Q sales drop 6%, loss mounts
By Furniture Today Staff -- Furniture Today, August 22, 2004
Forth Worth, Texas — A 6% sales decline, including an 18% drop in same-store sales, led to a $6.3 million net loss for The Bombay Company in its second quarter ended July 31, compared with a $768,000 loss in the same period a year earlier.
"Our spring season was an abysmal performance," said Steve Farley, the specialty retailer's executive vice president of marketing and merchandising.
Stores suffered from a lack of new merchandise and from inaccurate planning that created an "overhang" of old inventory, executives said. Chairman and CEO James Carreker said the company has learned from those mistakes, however.
"We believe we've taken some positive steps forward with the arrival of our fall assortment and some major improvements in our merchandise," Carreker said. "We believe we are truly turning the corner on many of the issues that have challenged our performance these past few quarters."
A new inventory planning system should correct the problem with excess merchandise, Farley said. Carreker said that in order to maintain newness in merchandise, the retailer will carry less backup goods in some cases and will be "willing to sell through" items more quickly — which eventually will influence consumers to buy the store's fashionable goods before they're gone.
Bombay also plans a more aggressive marketing campaign in November and December to boost its crucial holiday selling season, executives said.
Sales for its second quarter came to $122.5 million. The company had a net gain of seven stores in the period, ending the quarter with 472.
Softness in demand for moderately priced home furnishings also hurt the company in the second quarter, Carreker said. He said the company also suffered a "loss in operating leverage against a higher base of fixed costs due to increased store count and our investment in infrastructure."
Because of its weak first half, the company said it will delay the opening of as many as 10 stores this year, opening a net of 29 to 34 stores. Plans for fiscal 2005 remain unchanged, with a net gain of 41 stores projected.
For this year's third quarter, the company projects revenues in the range of $138 million to $143 million, compared with $135.4 million in the same period a year ago, and low double-digit declines in same-store sales.
It projects a loss of 7 to 11 cents per share.
| The Bombay Company | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are loses or declines. | |||
| Quarter ended 7/31 | 2004 | 2003 | Change |
| (a) Includes income tax benefits of $3.8 million in the 2004 quarter, $501,000 in the 2003 quarter, $7.4 million in the 2004 six months and $1.3 million in the 2003 six months. (b) Based on average shares outstanding of 35.7 million in the 2004 quarter, 34.6 million in the 2003 quarter, 35.6 million in the 2004 six months and 34.1 million in the 2003 six months. |
|||
| Revenues | $122,479,000 | $130,273,000 | (6.0%) |
| Operating income | (10,144,000) | (1,263,000) | — |
| Net income (a) | (6,328,000) | (768,000) | — |
| Earnings per share (b) | (0.18) | (0.02) | — |
| 6 months ended 7/31 | 2004 | 2003 | Change |
| Revenues | $246,060,000 | $249,510,000 | (1.4%) |
| Operating income | (19,509,000) | (3,509,000) | — |
| Net income (a) | (12,074,000) | (2,041,000) | — |
| Earnings per share (b) | (0.34) | (0.06) | — |
-
Pier 1 profits up 9.4% in 3Q
Dec 21, 2011 -
Sears Canada sales fall 7.1% in third quarter
Nov 22, 2011 -
Brick Group earnings fall 90.3% on small sales gain
Aug 15, 2011 -
Pier 1 reports $38.8M profit
Dec 21, 2009
Featured Company
-
FurnitureCore.com
FurnitureCore.com is a dynamic web application aimed at the furniture industry. Retailers and manufacturers alike will find our deep reserve of tools to be exactly what their furniture business needs.www.furniturecore.com... more
VIEW ALL GALLERIES
