WATSONVILLE, Calif., April, 2013 (GLOBE NEWSWIRE) –
West Marine, Inc. (Nasdaq:WMAR), the largest specialty retailer of boating supplies
and accessories, today reported financial results for the first quarter
ended March 30, 2013.
- Net revenues were $114.2 million, a decrease of 5.9% compared to last year.
- Comparable store sales decreased by 6.6% compared to last year.
- Direct-to-Consumer channel sales were up 15.8%, driven by our strategic investments in eCommerce.
- Sales of product in our Merchandise Expansion categories were up 0.5%, with Core product sales down 7.3% compared to last year.
- Pre-tax loss was $15.0 million, compared to a pre-tax loss of $10.6 million last year.
- The company is lowering 2013 full-year guidance, with pre-tax income
now expected to be in the range of $24.0 million to $27.0 million,
compared to pre-tax income of $24.3 million for 2012.
- Net loss per share was ($0.38), as compared to net loss per share of ($0.27) last year.
- First quarter liquidity improved substantially versus last year,
with cash increasing from $2.2 million last year to $22.5 million.
- The company remained debt-free with $114.5 million available on its revolving credit line at the end of the period.
Net revenues for the 13 weeks ended March 30, 2013 were $114.2
million, a decrease of 5.9% compared to net revenues of$121.5
million for the 13 weeks ended March 31, 2012.
In line with our omni-channel focus, we also have changed the
definition of comparable store sales by now including sales from our
Direct-to-Consumer and Port Supply divisions. As before, store sales are
included in comparable store sales in the fiscal period in which they
commence their 14th full month of operations. Stores that were closed or
substantially remodeled (i.e., resulting in an increase or decrease of
40% or more of selling square footage) are still excluded. Using this
new definition, comparable store sales for our first quarter decreased
by 6.6% over the same period last year. For the first quarter last year,
we reported a 4.3% increase in comparable store sales. However, using
the new definition, our first quarter 2012 comparable store sales
increased by 3.4%.
Matt Hyde, West Marine’s CEO, commented: “We are disappointed in our
first quarter sales results which were impacted by a much colder spring
hitting many parts of the country compared to last year. With boats
remaining under snow in the northeast and wind conditions stalling usage
in the southeast, the launch of our season is starting much later than
expected. On the other hand, I am pleased to report that we were able to
partially offset these weak results by solid growth in the regions
where spring weather has been more typical. Additionally, our ongoing
success in executing our eCommerce, merchandise expansion and store
optimization strategies continues to drive strong growth above our base
business. We remain cautiously optimistic for the upcoming months, and
we stand ready to serve our customers once the weather breaks and the
season kicks into high gear.”
Net loss for the first quarter was $9.0 million, or ($0.38) per
share, compared to net loss of $6.2 million, or ($0.27) per share for
the first quarter last year.
Total inventory at March 30, 2013 was $243.9 million, a $3.1 million,
or 1.3%, increase versus the balance at March 31, 2012, and a 3.9%
increase on an inventory per square foot basis. Inventory turns for 2013
were down 3.8% versus the first three months of last year.
Return on Invested Capital (“ROIC”) for the 52-week period
ended March 30, 2013 was 6.9%, which compares to 7.2% adjusted ROIC for
the 52-week period ended March 31, 2012. ROIC based on GAAP net income
was 17.4% for the 52-week period endedMarch 31, 2012.
Segment Reporting Change
Historically, we have reported three segments — Stores, Port Supply
(wholesale) and Direct-to-Consumer (eCommerce, catalog and call center
transactions). With our new CEO, we have changed the way in which we
view and manage our business by making organizational changes,
integrating systems and concentrating our strategic focus on
omni-channel retailing. As a result of these changes, beginning in this
fiscal year, we have one reportable segment.
2013 Guidance
As a result of the lower than expected sales results in the first
quarter, we are lowering our previously-issued earnings guidance for
fiscal year 2013. We now expect pre-tax income in a range of $24.0
million to $27.0 million, approximately $1.5 million lower than our
previously-communicated pre-tax income guidance. This will result in
diluted earnings per share of approximately $0.60 to $0.67. Comparable
store sales for full-year 2013 are now anticipated to be flat to up 2.0%
(using our new definition for comparable store sales outlined above),
with total revenues now expected to be in the range of $675 million to
$690 million, $25 million lower than our previously-communicated
guidance. We anticipate capital expenditures for fiscal 2013 to be in
the range of $25 million to $29 million unchanged from our prior
guidance.
Share Repurchase Program
As previously disclosed, our Board of Directors authorized a $10
million repurchase program with the primary purpose of mitigating the
dilutive impact of shares issued under the company’s omnibus equity
incentive plan and its employee stock purchase plan. Accordingly, in the
second quarter of 2013, we expect to implement repurchases to offset
shares issued under those plans during the first quarter of 2013.
West Marine, Inc.
