West Marine, Inc. reported net sales for the quarter ended April 3, 2004 of $129.2 million, up 16.2% from $111.1 million in 2003. Net loss for the quarter was ($3.1 million), or ($0.15) per share, compared to a net loss of ($6.1 million), or ($0.32) per share, a year ago.
Comparable store net sales for the first quarter increased 10.2% from 2003. Comparable store sales by region for the first quarter were as follows: Northeast 20.6%, Southeast 5.8%, and West Coast 7.5%. Comparable store sales are defined as sales from stores that have been open at least thirteen months and where selling square footage did not change by more than 40% in the previous thirteen months.
John Edmondson, West Marine's chief executive officer, stated, “The first quarter was a good start for us. Moreover, April sales have started off strongly, continuing the trend from the first quarter. We now expect our comparable store sales for the second quarter to increase approximately 7% to 8% over last year, up from our previous estimate of 5% to 6%. As a result, we are raising our earnings guidance for the second quarter.
“However, we have also adjusted our forecast for third quarter sales and earnings downward, based upon the expected impact of Independence Day sales events shifting from July last year into June this year. Overall, considering the strong first quarter results combined with increased expectations for the remaining year, we are increasing our 2004 earnings guidance to $1.45 to $1.50 per share.”
2004 2003
--------- ----------
1st Qtr. Net sales $129 M $111 M
--------- ----------
(Actual) EPS ($0.15) ($0.32)
--------- ----------
Comp sales 10.2% -10.2%
------------------------ ----------
2nd Qtr. Net sales $259 M To $263 M $233 M
------------------------ ----------
(Projected) EPS $1.20 To $1.23 $0.98
------------------------ ----------
Comp sales 7.0% To 8.0% -4.4%
------------------------ ----------
3rd Qtr. Net sales $204 M To $206 M $192 M
------------------------ ----------
(Projected) EPS $0.49 To $0.50 $0.39
------------------------ ----------
Comp sales 1.0% To 2.0% 1.2%
------------------------ ----------
4th Qtr. Net sales $129 M To $130 M $125 M
------------------------ ----------
(Projected) EPS ($0.09) To ($0.08) ($0.08)
------------------------ ----------
Comp sales 3.0% To 4.0% 2.9%
------------------------ ----------
FY 2004 Net sales $721 M To $728 M $661 M
------------------------ ----------
(Projected) EPS $1.45 To $1.50 $0.99
------------------------ ----------
Comp sales approx. 5.0% -2.5%
------------------------ ----------
West Marine, Inc.
Condensed Consolidated Statement of Operations Data
For the 13 weeks ended April 3, 2004 and March 29, 2003
(Unaudited, in thousands except per share amounts)
13 Weeks 13 Weeks
April 3, 2004 March 29, 2003
--------------- ---------------
Net sales $129,196 100.0% $111,148 100.0%
Cost of goods sold, including buying
and occupancy 95,475 73.9% 81,395 73.2%
--------------- ---------------
Gross profit 33,721 26.1% 29,753 26.8%
Selling, general and administrative
expenses 37,003 28.6% 35,306 31.8%
Acquisition integration costs - 0.0% 909 0.8%
--------------- ---------------
Loss from operations (3,282) -2.5% (6,462) -5.8%
Interest expense 1,777 1.4% 1,627 1.5%
Loss on extinguishment of debt - 0.0% 1,902 1.7%
--------------- ---------------
Loss before taxes (5,059) -3.9% (9,991) -9.0%
Benefit for income taxes 1,973 1.5% 3,896 3.5%
--------------- ---------------
Net loss $(3,086) -2.4% $(6,095) -5.5%
=============== ===============
Net loss per common and common
equivalent share - (basic & diluted) ($0.15) ($0.32)
