West Marine, Inc. reported net sales for the quarter ended March 29, 2003 of $111.1 million, which includes the net sales of 62 newly acquired BoatU.S. stores, up 14.4% from $97.2 million in 2002. Comparable store net sales decreased 10.2% from 2002. Net loss for the quarter was ($6.1 million), or ($0.32) per share, compared to a net loss of ($2.4 million), or ($0.13) per share, a year ago.

Excluding $2.8 million in pre-tax costs related to the acquisition of certain BoatU.S. operations, or $0.09 per share after-tax, net loss for the quarter is ($4.4 million), or ($0.23) per share. Acquisition-related costs include $0.9 million for incremental costs incurred to integrate the newly acquired operations and $1.9 million for early debt extinguishment costs incurred to finance the acquisition.

John Edmondson, West Marine’s chief executive officer, stated, “Our operational execution was very good in the first quarter. We completed the integration of our BoatU.S. acquisition ahead of schedule.

“Weather was clearly a factor in the first quarter when compared to a mild winter last year. The economy clearly affected our more discretionary product lines such as electronics.

“Based upon a disappointing start in April, we remain cautious about sales trends in the second quarter. Our current estimate for comparable store sales is -3% for the quarter. However, we continue to experience a positive gross margin trend. As a result we are comfortable with the current consensus estimate of $1.03 earnings per share for the second quarter.”

West Marine’s new initiatives for 2003 include opening more new stores in Canada and opening more West Marine Express stores, which are smaller format stores located next to marinas. In January 2003, West Marine acquired all 62 BoatU.S. retail stores, as well as its catalog and wholesale operations.

West Marine, Inc.
Condensed Consolidated Statements of Operations
For the quarters ended March 29, 2003 and March 30, 2002
(Unaudited, in thousands except per share amounts)

                                    March 29, 2003    March 30, 2002
                                   ----------------   ---------------
Net sales                          $111,148  100.0%   $97,166  100.0%
Cost of goods sold, including
 buying and occupancy                81,395   73.2%    72,052   74.2%
                                   --------- ------   -------- ------
            Gross profit             29,753   26.8%    25,114   25.8%
Selling, general and
 administrative expenses             35,306   31.8%    28,055   28.8%
Acquisition integration costs           909    0.8%
                                   --------- ------   -------- ------
            Loss from operations     (6,462)  -5.8%    (2,941)  -3.0%
Interest expense                      1,627    1.5%     1,085    1.1%
Loss on extinguishment of debt        1,902    1.7%
                                   --------- ------   -------- ------
            Loss before taxes        (9,991)  -9.0%    (4,026)  -4.1%
Benefit for income taxes              3,896    3.5%     1,590    1.6%
                                   --------- ------   -------- ------
            Net loss                $(6,095)  -5.5%   $(2,436)  -2.5%