DWR posts 4Q profit
By Furniture Today Staff -- Furniture Today, March 16, 2008
San Francisco — Earnings of $2.3 million in the fourth quarter lifted retailer Design Within Reach to a profit for the year, reversing a loss in 2006.
"We are very pleased with our 2007 performance, which marks a significant milestone in Design Within Reach's turnaround," said CEO Ray Brunner. "Achieving annual profitability is the culmination of 18 months of controlling expenses and improving margins."
Sales in the fourth quarter were up 3.4% from the same period a year earlier, to $52 million. For the year, sales of $193.9 million were up 8.9% from 2006. The 65-store retailer said its gross profit margin took a big jump in the latest quarter, to 48.2% from 39.9% a year earlier.
In 2006, the company posted net losses of $2 million in the fourth quarter and $8.3 million in the year. For the year, net income in 2007 was $323,000.
By channel, the company said sales in its stores in the quarter were up 8.7% from a year earlier, to $33.7 million, while direct sales — by phone or from the Design Within Reach Web site — declined 5.9% to $12.7 million.
Earnings per share in 2007 were 16 cents for the fourth quarter and 2 cents for the year.
For 2008, the company said it is maintaining its forecast of $200 million in sales and earnings per share of 3 to 5 cents.
| Design Within Reach | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| 13 weeks ended 12/29 | 2007 | 2006 | Change |
| (a) Includes income tax benefit of $756,000 in the 2006 quarter and $4.6 million in the 2006 year. | |||
| Sales | $51,994,000 | $50,265,000 | 3.4% |
| Operating income | 3,186,000 | (2,851,000) | — |
| Net income (a) | 2,270,000 | (1,991,000) | — |
| Earnings per share | 0.16 | (0.14) | — |
| 52 weeks ended 12/29 | 2007 | 2006 | Change |
| Sales | $193,936,000 | $178,142,000 | 8.9% |
| Operating income | (729,000) | (13,094,000) | — |
| Net income (a) | 323,000 | (8,289,000) | — |
| Earnings per share | 0.02 | (0.58) | — |
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