West Marine reports lower-than-expected Q3 declines
West Marine (Nasdaq:WMAR) said net revenues for the third quarter dropped 6.7 percent as new boat sales remained stagnant. The decline was lower than expected as the company supported the maintenance and improvement of existing boats, keeping its bottom line afloat.
For the quarter ended Oct. 3, net revenues were $168.2 million compared to $180.2 million last year. Comparable store sales were down 4.3 percent from last year -- about $6.3 million.
The company noted that adjusted for the impact of a fiscal calendar shift due to a 53-week 2008 fiscal year, 2009 fiscal third quarter net revenues would have increased by $0.3 million, or 0.2 percent. Comparable store sales would have increased by $5.1 million, or 3.7 percent, over last year.
Stores closed during the third and fourth quarters of 2008 and first three quarters of 2009 reduced net revenues by $8.9 million versus last year. The company said the decline was largely offset by $5.9 million in net revenues from new stores opened during the third and fourth quarters of 2008 and first three quarters of 2009.
Net revenues in the stores segment were down 5.2 percent to $151.4 million. Wholesale segment revenues through its distribution centers were $7.5 million, a decrease of 24.3 percent. Sales in the direct segment dropped 12.4 percent to $9.2 million.
"We had planned for considerably lower revenues, so we’re quite pleased with our third quarter sales results," said Geoff Eisenberg, CEO of West Marine, in a statement. "We experienced a number of favorable impacts on our business including continued improvement in boat usage, continued movement towards do-it-yourself projects, continued good results from our product expansions and larger store formats, favorable weather conditions in most markets, and continued progress in attracting customers who previously shopped at now-closed competitors."
Crocs to clarify credit agreement worth with bank
Crocs (Nasdaq: CROX) and PNC Bank entered into a first amendment to clarify the tangible net worth financial covenant contained in a credit agreement, according to a filing with the SEC.
The amendment decreases Crocs' minimum tangible net worth requirement from $266 million to $205 million. It will be measured at the end of each fiscal quarter, starting with the quarter ending Dec. 31.
--Compiled by Wendy Geister
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