Jennifer revenue slides 19.6%
Janice Chamberlain -- Furniture Today, April 13, 2005
Woodbury, N.Y. — Sofa-sleeper specialty retailer Jennifer Convertibles recorded a 19.6% revenue drop in its second quarter, and more than quadrupled its net loss for the period.
Revenues in the quarter ended Feb. 26 were $24.9 million, compared with $30.9 million for the comparable 2004 period. The quarterly net loss grew to $5.4 million from $1.1 million in the year-earlier period.
Excluding net losses from discontinued operations, the net loss in the latest quarter was $4.8 million, measured against a net loss of $595,000 in the prior period.
Revenues in the six months fell 12.6% to $56.5 million from $64.6 million a year ago. The net loss in the latest six months increased to $7.8 million from $2.8 million in the first six months of 2004.
Disallowing the net losses from discontinued operations of $726,000 in the 2005 period and $449,000 in the 2004 period, the loss in the 2005 six months was $7.1 million versus $2.4 million in the earlier comparable period.
Jennifer's same-store sales plummeted 20.4% in the latest quarter and 13.7% for the six months.
The company said revenues from continuing operations were hurt by deflationary pressures as sourcing shifted to China and other Asian nations.
CEO Harley Greenfield said that written sales began to increase near the end of the quarter and have continued. As a result of the company's new supply chain and implementation of new marketing and merchandising initiatives, he expects Jennifer to return to profitability in the second half of this fiscal year.
"The second quarter is our seasonally worst quarter," said Greenfield. "During the quarter, we closed nine stores and further reduced our overhead expenses. We were also somewhat impacted by the going-out-of-business sales of one of our competitors in our major markets.
"We believe we are now positioned to take advantage of the steps we have taken. We should see the benefits of the cost reductions, improvement in our revenues and increase in margins beginning in the third quarter."
| Jennifer Convertibles | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 2/26 | 2005 | 2004 | Change |
| (a) Includes service contract revenues of $1.6
million in the 2005 quarter, $2 million in the 2004 quarter, $3.6 million in
the 2005 six months and $4.3 million in the 2004 year. (b) Includes net losses
from discontinued operations of $549,000 in the 2005 quarter, $532,000 in the
2004 quarter, $726,000 in the 2005 six months and $449,000 in the 2004 six
months. (c) Based on average shares outstanding of 5.8 million in the 2005
periods and 5.7 million in the 2004 periods. |
|||
| Revenues (a) | $24,870,000 | $30,926,000 | (19.6%) |
| Operating income | (2,733,000) | (209,000) | — |
| Net income (b) | (5,363,000) | (1,127,000) | — |
| Earnings per share (c) | (0.93) | (0.20) | — |
| Q6 months ended 2/26 | 2005 | 2004 | Change |
| Revenues (a) | $56,530,000 | $64,650,000 | (12.6%) |
| Operating income | (4,589,000) | (1,530,000) | — |
| Net income (b) | (7,828,000) | (2,818,000) | — |
| Earnings per share (c) | (1.36) | (0.50) | — |
-
Jennifer revenues off 19.6% in 2nd qtr.
May 8, 2005 -
Jennifer Convertibles 2Q revenues down 19.6%
Apr 13, 2005
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
