West Marine, Inc. reported that sales for the second quarter ended July 2 improved 1.1 percent to $236.0 million from $233.4 million in the year-ago period. Revenues in the Retail Stores segment were $214.8 million, up 1.0% from 212.6 million in the year-ago period.
Gross margins improved 70 basis points to 36.0 percent compared to 35.3 percent last year. Management said the increase in margins was attributable to 0.3% increase in raw product margin driven by less promotional and clearance activity and a 0.3% impact of lower unit buying and distribution costs. Additionally, gross margin benefited by 0.1% from improved shrinkage results.
Resulting net income was $44.7 million, or $1.92 per diluted share, compared with earnings of $35.1 million, or $1.56 per diluted share, in the year-ago period.
Looking ahead, WMAR raised previously-issued pre-tax income guidance to a range of approximately $18.5 million to $20.0 million versus a previously-communicated range of $17.5 million to $19.0 million.