Brookstone 2nd-Quarter Earnings Exceed Previous Guidance; Company
Raises Earnings Forecast for the Year NASHUA, N.H., Aug. 18
/PRNewswire-FirstCall/ -- Brookstone, Inc. (NASDAQ:BKST), the
product development and specialty retail company, announced today
that second-quarter results improved by approximately 80 percent
over 2003, driven by a 13.3 percent rise in same-store sales.
Brookstone also raised its year-end earnings forecast for the
second time this year. For the second quarter ended July 31, 2004,
Brookstone narrowed its loss to $465,000, or $0.02 per diluted
share, compared to previously released guidance of $0.03 to $0.04
per diluted share, and compared to the 2003 second-quarter loss of
$2.3 million, or $0.12 per diluted share. Same-store sales for the
13-week period climbed 13.3 percent, while total sales for the
second quarter surged 22.2 percent to $98.3 million, compared to
$80.5 million for the second quarter of 2003. Direct Marketing
sales rose 16.6 percent to $16.3 million as compared to last year.
For the first six months of 2004, same-store sales climbed 16.2
percent. Total sales for the first half of the year increased 24.3
percent to $175.8 million, compared to $141.4 million in the same
period last year. Direct Marketing sales rose 16.5 percent to $28.1
million, compared to $24.1 million last year. Year-to-date revenue
improved 24.3 percent, as the net loss narrowed by 41.5 percent to
$5.1 million, or $0.25 per diluted share, compared to $8.7 million,
or $0.45 per diluted share last year. Because of the seasonal
nature of specialty retailing, Brookstone generally carries a loss
through the first three quarters and makes its profit in the fourth
quarter. "We are very pleased with our second-quarter results and
believe they validate our unique market position as both a product
developer and multi-channel retailer," said Brookstone Chairman,
President and Chief Executive Officer Michael Anthony. "Even in
this variable retail environment, we generated consistently strong,
double-digit same-store sales increases in all three months of the
quarter, delivered a strong Father's Day performance and
significantly improved our operating results." Mr. Anthony
continued: "During the second quarter, we saw continued favorable
customer response to our unique and innovative proprietary
products. Additionally, we're pleased to report that our new and
remodeled stores are performing at or above expectations and that
our airport stores continue to deliver strong results. To date this
year, we've opened eight new stores and remodeled three, all in our
dynamic New Store Design." Mr. Anthony continued: "The Brookstone
Direct Marketing business also turned in an impressive performance,
led by the Internet and the expanded circulation of the Brookstone
catalog, which delivered increased sales to the catalog and
Internet site and significant incremental revenue to the stores.
We're very pleased with the synergy we've achieved among our sales
channels through this targeted marketing strategy and plan to
increase the circulation of the Brookstone catalog in the fourth
quarter by approximately 75 percent." Looking forward to the second
half of the year, Mr. Anthony said: "We remain on track to open 18
to 20 new stores this year, including three in airports, and to
remodel 10 to 12 stores. We plan to open approximately 11 new
stores and remodel nine in the third quarter. "During the third and
fourth quarters, we will introduce more than 100 new products that
we believe will resonate strongly with customers. With the addition
of these new products to our already compelling merchandise
selection, we believe Brookstone again will be the retailer of
choice this Holiday season." Mr. Anthony concluded: "We expect a
third-quarter loss of between $0.33 and $0.36 per diluted share,
compared to a loss of $0.30 per diluted share in 2003. For the
third quarter, we anticipate same-store sales will increase in the
mid-single digits. This increased loss is consistent with our
business model, which typically increases losses in the third
quarter as we open new stores. "Furthermore, as a result of our
strong year-to-date results, we are raising our guidance for
year-end earnings to between $1.10 and $1.12 per diluted share,
compared to our earlier estimate of between $1.07 and $1.10 per
diluted share, an increase of up to 29 percent over the $0.87 we
earned in 2003." Brookstone, Inc. is a product development and
specialty retail company that operates 278 Brookstone brand stores
nationwide and in Puerto Rico. Typically located in high-traffic
regional shopping malls, lifestyle centers and airports, Brookstone
stores feature unique and innovative consumer products. The Company
also operates three stores under the Gardeners Eden brand, and a
Direct-Marketing business that consists of three catalog titles --
Brookstone, Hard-to-Find-Tools and Gardeners Eden -- as well as
e-commerce web sites at http://www.brookstone.com/ and
http://www.gardenerseden.com/. Statements made available on this
conference call and web cast which are not historical facts,
including statements about the Company's confidence or
expectations, earnings, anticipated operations of its e-commerce
sites and those of third-party service providers, and other
statements about the Company's operational outlook, are
forward-looking statements subject to risks and uncertainties that
could cause actual results to differ materially from those set
forth in such forward-looking statements. Such risks and
uncertainties include, without limitation, risks of changing market
conditions in the overall economy and the retail industry, consumer
demand, the effectiveness of e-commerce technology and marketing
efforts, availability of products, availability of adequate
transportation of such products, and other factors detailed from
time to time in the Company's annual and other reports filed with
the Securities and Exchange Commission. Words such as "estimate,"
"project," "plan," "believe," "feel," "anticipate," "assume,"
"may," "will," "should" and similar words and phrases may identify
forward-looking statements. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date thereof. The Company undertakes no obligations
to publicly release any revisions to these forward-looking
statements or reflect events or circumstances after the date
hereof. CONTACT: Philip Roizin EVP of Finance and Administration
(603) 880-9500 Robert Fusco Investor Relations (603) 880-9500
Brookstone, Inc. Consolidated Statement of Operations ($ in
thousands) (Unaudited) Thirteen weeks ended Twenty-six weeks ended
July 31, August 2, July 31, August 2, 2004 2003 2004 2003 Net sales
$98,316 $80,474 $175,767 $141,431 Cost of sales 63,664 53,850
118,028 100,017 Gross profit 34,652 26,624 57,739 41,414 Selling,
general and administrative expenses 35,036 30,207 65,276 55,291
Loss from operations (384) (3,583) (7,537) (13,877) Interest
expense, net 209 181 445 311 Loss before taxes and other party
interest in consolidated entities (593) (3,764) (7,982) (14,188)
Income tax benefit (228) (1,449) (3,073) (5,462) Loss before other
party interests in consolidated entities (365) (2,315) (4,909)
(8,726) Other party interest in consolidated entities, net of tax
100 -- 200 -- Net Loss $(465) $(2,315) $(5,109) $(8,726)
Basic/diluted loss per share: Net Loss $(0.02) $(0.12) $(0.25)
$(0.45) Weighted average shares outstanding - basic/diluted 20,203
19,323 20,118 19,267 Brookstone, Inc. Consolidated Condensed
Balance Sheet ($ in thousands) Unaudited July 31, August 2, January
31, 2004 2003 2004 Current Assets: Cash and cash equivalents
$30,942 $29,008 $69,738 Receivables, net 9,520 6,478 7,476
Merchandise inventories 68,886 55,489 66,876 Deferred income taxes
9,502 9,849 4,799 Other current assets 6,998 6,024 6,217 Total
current assets 125,848 106,848 155,106 Deferred income taxes 4,738
5,854 4,738 Property and equipment, net 64,829 45,184 53,970
Intangible assets, net 3,988 4,258 4,123 Other assets 5,377 1,937
2,390 Total assets $204,780 $164,081 $220,327 Liabilities and
Shareholders' Equity Current Liabilities: Accounts payable $15,356
$10,780 $15,759 Other current liabilities 26,603 23,647 41,827
Total current liabilities 41,959 34,427 57,586 Other long term
liabilities 17,453 14,567 15,676 Long term obligation under capital
lease 1,946 2,027 1,941 Commitments and Contingencies Total
shareholders' equity 143,422 113,060 145,124 Total liabilities and
shareholders' equity $204,780 $164,081 $220,327 DATASOURCE:
Brookstone, Inc. CONTACT: Philip Roizin, EVP of Finance and
Administration, or Robert Fusco, Investor Relations, both of
Brookstone, Inc., +1-603-880-9500 Web site:
http://www.brookstone.com/ http://www.gardenerseden.com/
Copyright
Grafico Azioni Brookstone (NASDAQ:BKST)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Brookstone (NASDAQ:BKST)
Storico
Da Giu 2023 a Giu 2024