John Edmondson, CEO of West Marine said recently that August continued the soft trend that West Marine first observed in the latter part of June. Sales have remained soft so far in September and, as a result, he now expects third quarter sales to range from $184 million to $185 million and earnings per share to range from $0.33 to $0.35. Edmondson currently expects comparable store sales for September to range from -6% to -3%, and for the third quarter to range from -7% to -6%.
“For the fourth quarter, we now expect sales ranging from $119 million to $121 million and a loss per share ranging from ($0.11) to ($0.08). For the full year 2004, we currently expect to report sales ranging from $685 million to $688 million and earnings per share ranging from $1.26 to $1.31. We currently expect comparable store sales for the fourth quarter to range from -2% to flat, and for the full year 2004 to range from flat to 1%.
“Recent hurricane activity in the southeast had only a minor effect on our third quarter sales. Hurricane Charley forced us to temporarily close around a dozen stores and to close our Punta Gorda store for the foreseeable future. Hurricane Frances resulted in the temporary closure of around two dozen stores. Although Hurricane Ivan, currently a Category 4 storm, could affect a larger number of stores in a heavy boating area, we believe our revised third quarter sales and earnings estimates reflect this. Due to extensive hurricane preparation and clean-up efforts, we could open fewer stores in the third quarter than previously scheduled, although we would expect to catch up in the fourth quarter.”
