West Marine Q4 results hurt by one-time charges
West Marine (Nasdaq: WMAR) said its fiscal fourth-quarter loss widened as consumers cut back on big-ticket spending. Geoff Eisenberg, CEO, said in a statement that the year was "challenging" for the industry.
The loss for the quarter ended Dec. 29 was $65.7 million, or $3 per share, versus a loss of $12.8 million, or $0.60 per share last year. Results include a $2.25 per share charge related to an assessment of goodwill, $0.08 per share in costs related to an SEC investigation, $0.04 per share related to severance costs for its previous chief executive, and a $0.02 per share impairment charge related to individual store performance. Excluding one-time items, the loss totaled $0.61 per share.
Revenue fell 5 percent to $118.3 million from $124 million last year. Same-store sales fell 3 percent.
The leisure industry is suffering as consumers cut back on big-ticket items such as boats amid a rising cost of living and weak credit and housing markets.
For the fiscal year, loss totaled $50.2 million, or $2.31 per share, compared with $7.7 million, or $0.36 per share, last year. Revenue fell 5 percent to $679.5 million from $716.6 million last year.
The company said its year-ago results were restated because it determined it needed to increase its reserves for workers' compensation claims and made other adjustments.
The company predicts fiscal earnings of $0.02 to $0.09 per share for fiscal 2008. It expects same-store sales to fall 3.5 percent to 5 percent. Sales are expected to be between $660 million and $670 million.
LaCrosse subsidiary receives $1.3 million Army order
LaCrosse Footwear (Nasdaq: BOOT) said its Danner subsidiary received a new business order for $1.3 million from the U.S. Army.
Danner’s manufacturing facility in Portland, Ore., will supply soldiers with 9,350 pairs of the Danner Explorer boot in the second quarter of 2008.
Danner also recently fulfilled significant boot orders with the U.S. Marine Corps.
Forzani gets OK for share repurchase
The Forzani Group (TSX: FGL), Canada's largest national retailer of sporting goods, said the Toronto Stock Exchange has accepted its application to purchase outstanding Class A common shares. All purchases will be made through the facilities of the TSX from March 28, 2008, to March 27, 2009.
As of March 24, there were more than 32.9 million common shares outstanding. The number of shares to be purchased will not exceed 2.6 million -- about 10 percent of the public float of the company.
The company said the repurchase plan was put in place because it believes the common shares are undervalued in the market and are a good investment for the company at current and recent prices. All common shares purchased through the repurchase will be returned to treasury for cancellation.
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