| USA. New stores blamed for increased West Marine Q1 loss |
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| Thursday, 27 April 2006 | |
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Company news: West Marine, Inc. (Nasdaq:WMAR), has released unaudited operating results for the first quarter of 2006. Net loss for the thirteen weeks ended April 1, 2006 was $9.4 million, or ($0.44) per share, compared to a net loss of $5.5 million, or ($0.26) per share, for the same period a year ago. The increase in net loss for the first quarter of 2006, when compared to the same period last year, is largely due to additional operating costs for the 28 new stores that we opened during the latter half of 2005 and first three months of this year. Our new stores typically do not generate a positive earnings contribution before their first full boating season. In addition, our first quarter 2006 results reflect investments in store selling initiatives and the final portion of costs related to previously-announced discontinued software development projects. Net sales for the thirteen weeks ended April 1, 2006 were $132.6 million, compared to net sales of $125.3 million for the same period a year ago. Comparable store sales increased 4.8% for the thirteen weeks ended April 1, 2006. Peter Harris, West Marine's chief executive officer, stated, "First quarter results are both in line with our expectations and consistent with our focus on investing in long-term initiatives aimed at achieving significant and sustainable growth in shareholder value." |
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| Last Updated ( Thursday, 27 April 2006 ) |
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