West Marine CEO, John Edmondson, said that slowing consumer spending has caused a shortfall in company sales, causing him to cut guidance estimates for the third quarter and fiscal year. Sales for the third quarter are now expected to be $184 to $185 million, roughly 6% below the previous estimates of $195 to $197 million.
Comparable store sales for September should range from -6% to -3%, and for the third quarter from -7% to -6%. EPS was revised downwards by roughly 20% to 33¢ to 35¢ per share compared to previous estimates of 43¢ to 44¢.
West Marine is also expecting Q4 sales to range from $119 to $121 million with a net loss per share of (8¢) to (11¢). For the full year 2004, West Marine currently expects to report sales ranging from $685 million to $688 million, roughly a 2.5% decrease from previous estimates of $702 million to $706 million. 2004 FY earnings per share should range from $1.26 to $1.31 compared to the $1.36 to $1.40 reported at the end of the second quarter.
The barrage of Hurricanes hitting the southeast recently were said to have only a “minor effect on our third quarter sales,” with around a dozen stores temporarily closed and the Punta Gorda store closed for the “foreseeable future.”
Mr. Enmondson said, “Due to extensive hurricane preparation and clean-up efforts, we could open fewer stores in the third quarter than previously scheduled.” He said they may catch up in Q4.
