Bombay 3Q sales drop 15.5%
By Larry Thomas -- Furniture Today, November 19, 2006
Fort Worth, Texas — The Bombay Company said third-quarter sales tumbled 15.5% and its net loss more than tripled to $15.6 million from the comparable period last year.
The 453-store specialty retailer said same-store sales in the quarter also fell 15.5% as the company struggled with inventory issues and merchandising problems.
"Clearly, we are part of a troubled sector, and our numbers reflect that," said David Stewart, CEO. "We believe that we added to the problem by executing an overly zealous inventory reduction program that cost us sales."
He said the company made "important progress" on several key initiatives during the quarter, including cost controls, strengthening the merchandise presentation and concentrating on its core products.
He also said that during the quarter, 23 large stores that had been carrying BombayKids merchandise were converted to allow more space for core Bombay products. Kids merchandise was completely removed from 10 of the stores and the assortment was significantly reduced at the others.
"We will continue to monitor the performance of these stores and manage the BombayKids business based on these results," said Stewart, who added that BombayKids products continue to sell well on the company's Internet site.
Net sales for the quarter ended Oct. 28 came to $108.2 million, compared with $128.1 million in last year's third quarter. The net loss totaled $15.6 million, compared with a loss of $4.4 million a year earlier.
| The Bombay Company | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 10/28 | 2006 | (a)2005 | Change |
| (a) Restated. (b) Includes income tax benefits of $376,000 in the 2005 quarter, $2.2 million in the 2005 quarter, $1 million in the 2006 nine months and $11.6 million in the 2005 nine months. The 2005 periods also include pretax gains on the sale of assets of $4.1 million in the quarter and $4.7 million in the nine months. |
|||
| Revenues | $108,220,000 | $128,062,000 | (15.5%) |
| Operating income | (15,185,000) | (9,675,000) | - |
| Net income (b) | (15,624,000) | (4,355,000) | - |
| Earnings per share | (0.43) | (0.12) | - |
| 9 months ended 10/28 | 2006 | (a)2005 | Change |
| Revenues | $348,160,000 | $378,220,000 | (7.9%) |
| Operating income | (50,675,000) | (36,174,000) | - |
| Net income (b) | (51,098,000) | (21,676,000) | - |
| Earnings per share | (1.42) | (0.60) | - |
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Bombay posts $15.6 million loss in third quarter
Nov 17, 2006 -
Bombay posts $9.4M loss, citing transition
Sep 4, 2005
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