Jennifer earnings down 28.3% in quarter
Hopes high for new Ashley HomeStore
By Furniture Today Staff -- Furniture Today, July 16, 2007
Woodbury, N.T. — Specialty retailer Jennifer Convertibles said sales in its third fiscal quarter were 6.3% below the same period last year, while net income tumbled more than 28%.
Same-store sales were down 8.2% for the quarter ended May 26 and fell 5.6% during the first nine months of the fiscal year.
The company, which operates 171 Jennifer Convertibles and 16 Jennifer Leather stores, reported revenues of $33.3 million for the most recent quarter, compared with $35.5 million for the same period last year.
Net income totaled $1.61 million or 18 cents per share, compared with $2.25 million or 26 cents per share in last year's third fiscal quarter. Last year's figure included a loss of $11,000 from stores that have since closed.
For the first nine months of the fiscal year, net income was $2.23 million or 25 cents per share, down 38.8% from $3.65 million or 46 cents per share in the comparable period of the previous fiscal year. Revenue in the nine months came to $99.4 million, down from $104.2 million a year earlier.
During the most recent quarter, the company opened one store and closed none.
Since the quarter ended, the company has opened its first Ashley Furniture HomeStore, a 40,000-square-foot location in Carle Place, N.Y.
"We expect this location to produce substantial revenues and additional profitability to fuel Jennifer's growth," said CEO Harley Greenfield., "We are currently in the process of negotiating the lease for our second Ashley HomeStore location."
| Jennifer Convertibles | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 5/26 | 2007 | 2006 | Change |
| (a) Includes revenue from service contracts of $2.3 million in the 2007 quarter, $2.4 million in the 2006 quarter, $6.5 million in the 2007 nine months and $7.1 million in the 2006 nine months. (b) Includes a loss from discontinued operations of $11,000 in the 2006 quarter and a gain from discontinued operations of $91,000 in the 2006 nine months. | |||
| Revenues (a) | $33,270,000 | $35,496,000 | (6.3%) |
| Operating income | 1,707,000 | 2,406,000 | (29.1%) |
| Net income (b) | 1,609,000 | 2,245,000 | (28.3%) |
| Earnings per share | 0.18 | 0.26 | (30.8%) |
| 9 months ended 5/26 | 2007 | 2006 | Change |
| Revenues (a) | $99,440,000 | $104,170,000 | (4.5%) |
| Operating income | 2,434,000 | 4,035,000 | (39.7%) |
| Net income (b) | 2,230,000 | 3,646,000 | (38.8%) |
| Earnings per share | 0.25 | 0.46 | (45.7%) |
