West Marine, Inc. posted net sales of $264.5 million for the second quarter, an increase of 4.3% from net sales of $253.5 million last year. Comparable store sales for the second quarter increased 2.3%. Net sales for the twenty-six weeks ended July 1, 2006 were $397.2 million, an increase of 4.8% from net sales of $378.9 million for the same period a year ago. Comparable store sales for the twenty-six weeks ended July 1, 2006 increased 3.1%.
Net sales attributable to the company’s Stores division for the first six months of 2006 were $350.0 million, an increase of $21.1 million, or 6.4%, compared to the same period last year. Port Supply (wholesale) division sales through the company’s distribution centers for the first six months of 2006 were $23.9 million, a decrease of $3.0 million, or (11.0%), compared to the same period last year, primarily due to increased sales to Port Supply customers through store locations, which are included in Stores sales. Net sales of the Direct Sales division for the first six months of 2006 were $23.4 million, an increase of $0.2 million, or 0.8%, compared to the same period last year.
Peter Harris, Chief Executive Officer of West Marine, said, “While we are encouraged by the positive comparable store sales results, they are below our expectations and internal projections. Most of our stores reported positive comp sales in the second quarter. However, the majority of our northeast and mid-Atlantic locations were negatively impacted by unusually heavy rainfall during June, which is our biggest revenue month. Additionally, we experienced mixed results from our new initiatives. As a result of the sales shortfall in the second quarter, we expect to revise our full year 2006 guidance and discuss progress on our strategic initiatives when we report our second quarter operating results.”
