Town Sports' Q2 sales hit by membership dip
Town Sports International Holdings (Nasdaq: CLUB) said its second-quarter revenue dipped 4.2 percent hurt by slower recruitment of new members and a dip in personal training revenue while consumer spending remains soft.
Revenue for the quarter was $123.9 million versus $129.3 million in 2008. Comparable club revenue decreased 6.3 percent compared to last year.
Net income was $2.5 million compared to a net income of $6.8 million in 2008. Earnings per diluted share were $0.11.
Total member count was 503,000, a decrease of 2.7 percent. Membership attrition averaged 3.7 percent per month compared to 3.2 percent in Q2 2008 and 3.6 percent in Q1 2009.
Total operating expenses increased 2.0 percent, and operating margin was 7.1 percent compared to 12.7 percent in 2008.
Revenue for the third quarter is expected to be between $117.0 million and $119.0 million versus $128.1 million for the same period in 2008.
Town Sports has clubs that operate under the brand names New York Sports Clubs, Boston Sports Clubs, Washington Sports Clubs and Philadelphia Sports Clubs.
Under Armour's Q2 profit up 5 percent
Under Armour said its second-quarter profit rose 5 percent, aided by strong sales of apparel and lower marketing expenses.
Quarterly profit increased 5 percent to $1.44 million, or $0.03 per share, from $1.38 million, or $0.03 per share last year. There were 50.6 million outstanding shares in the quarter, compared with 50.3 million a year ago.
Revenue rose 5 percent to $164.6 million from $156.7 million a year ago.
Apparel revenue rose nearly 17 percent to $112 million, while footwear revenue fell about 19 percent to $37.5 million. The company said the decline in footwear was expected since the company launched its Performance Training footwear in May 2008.
Looking ahead, it expects 2009 earnings of $0.80 to $0.82 per share, on revenue of $810 million.
Hanesbrands reports dip in Q2 sales
Putting a positive spin on an 8-percent drop in second-quarter sales, Hanesbrands (NYSE: HBI), parent of Champion, said the decline was better than the decline rate of the past two sequential quarters, which were also impacted by the recession.
Total net sales in the second quarter were $986.0 million, compared with $1.07 billion a year ago, while GAAP earnings per diluted share were $0.32, compared with $0.60 in the year-ago second quarter. Excluding restructuring and other actions, non-GAAP earnings per diluted share in the second quarter were $0.42, compared with $0.65 a year ago.
The company said its outerwear segment sales experienced the significant trend improvement that the company anticipated. Second-quarter outerwear sales declined by 11 percent, compared with the first quarter’s 21 percent decline. Based on the strength of advance orders, especially fleece, the company expects continued sequential improvement in the segment’s sales decline rate with third-quarter sales expected to decline in the mid-single digits or better.
Q2 sales down for GSI Commerce
GSI Commerce (Nasdaq: GSIC), a provider of e-commerce services, reported that its second-quarter net revenues decreased to $187.2 million from $193.2 million last year.
Net loss was $13.1 million, or $0.27 per share, compared to a net loss $20.3 million, or $0.43 per share. Loss from operations was $12.3 million compared to a loss from operations of $17.4 million.
"Net revenues and non-GAAP net revenues topped our expectations in the second quarter with revenues in both our e-commerce services and marketing services segments exceeding our plans," said Michael Rubin, chairman, president and CEO of GSI, in a statement. "Between business already signed and our current strong pipeline we believe we are on track to have a great year for new business and we are confident in our prospects for the balance of 2009 and beyond."
--Compiled by Wendy Geister
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