West Marine, Inc. saw a net loss for the first quarter of $11.2 million, or 52 cents per share, compared to a restated net loss of $11.9 million, or 56 cents per share, for the same period last year.
Net sales for the thirteen weeks ended March 31, 2007 were $126.1 million, compared to net sales of $132.6 million for the same period a year ago. West Marine operated 379 stores during the first quarter of 2007, compared to 407 stores during the first quarter of 2006. Comparable store sales decreased 2.1% during the first quarter of 2007.
Peter Harris, West Marine's chief executive officer, stated, “Our first quarter results reflect changes that have been made to improve the business' expense base while we work through a difficult industry climate. The company is delivering on our plans to reduce costs. Also, we are continuing to focus on being ready for the customer and serving them with fresh, exciting new products. As a result, our margins reflect the clearance of end-of-life merchandise taking place earlier in the year than in the past. While making progress, our ability to deliver this year's expected results ultimately depends on the strength of the boating market. We are well-positioned to take care of our customers as we now enter the key part of the season.”
West Marine, Inc. Condensed Consolidated Statements of Operations For the 13 Weeks Ended March 31, 2007 and April 1, 2006 (Unaudited and in thousands, except per share amounts) 13 Weeks Ended ------------------------------------------ As Restated (1) March 31, 2007 April 1, 2006 -------------------- -------------------- Net sales $ 126,052 100.0% $ 132,641 100.0% Cost of goods sold 99,232 78.7% 101,405 76.5% -------------------- -------------------- Gross profit 26,820 21.3% 31,236 23.5% Selling, general and administrative expense 43,836 34.8% 48,130 36.2% -------------------- -------------------- Loss from operations (17,016) -13.5% (16,894) -12.7% Interest expense 1,423 1.1% 1,859 1.4% -------------------- -------------------- Loss before income taxes (18,439) -14.6% (18,753) -14.1% Benefit from income taxes (7,194) -5.7% (6,827) -5.1% -------------------- -------------------- Net loss $ (11,245) -8.9% $ (11,926) -9.0% ==================== ==================== Net loss per common and common equivalent share - basic and diluted $ (0.52) $ (0.56) Weighted average common and common equivalent shares outstanding - basic and diluted 21,596 21,330