West Marine, Inc. fourth quarter net sales slipped 0.8% to $123.8 million, compared to net sales of $124.8 million for Q4 last year. Comparable store sales for the period increased 0.2% on top of a 3.9% improvement last year. The net loss for the quarter slimmed to $6.0 million, or a loss of 28 cents per share, from a net loss of $12.5 million, or 59 cents per share, when excluding one-time charges of $9.4 million in the 2006 quarter and $14.3 million in the year-ago period.
Net sales for fiscal year were $716.6 million, increasing 3.5% from $692.3 million last year. Comparable store sales for the year increased 2.4% after decreasing 2.2% last year. For fiscal 2006, gross profit as a percentage of net sales was 28.8%, a decrease of 40 basis points from the previous year. The decrease was driven by a charge of $8.4 million, or 120 basis points, in capitalized costs and allowances as a result of lowering inventory levels. SG&A expenses as a percentage of sales for fiscal year 2006 was 27.3%, a decrease of 160 basis points compared to 28.9% last year. Net loss for the year expanded to $7.1 million, or 33 cents per share, from $2.3 million, or 11 cents per share last year. Excluding one time charges of 46 cents per share, the company would have posted a net profit of 12 cents per share.
For fiscal year 2007, West Marine currently estimates earnings ranging from 45 cents to 55 cents per share and an increase in comparable store sales ranging from 1% to 2%. Net sales are expected to range from $706 million to $716 million for fiscal year 2007.
