West Marine reports 1Q results


West Marine lowered its full-year guidance after reporting a 5.9 percent decrease in first-quarter net revenue from $121.5 million in 2012 to $114.2 million this year.

Pretax income in fiscal 2013 is now expected to be in the range of $24 million to $27 million, about $1.5 million lower than the company’s previously communicated pretax income guidance, and would result in diluted earnings per share of about 60 to 67 cents.

West Marine also said it will combine all segments — previously reported as three separate entities — into one, beginning this fiscal year.

The company reported a first-quarter net loss of $9 million, or 38 cents a share, compared with a net loss of $6.2 million, or 27 cents a share, in the first quarter last year.

Comparable-store sales decreased by 6.6 percent for the quarter that ended March 30, compared with the quarter a year earlier, the company said; however, direct-to-consumer channel sales rose 15.8 percent, driven by the company’s investment in e-commerce.

"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,” West Marine CEO Matt Hyde said in a statement. “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.”

The company was able to partially offset those losses with solid growth in regions where spring weather was more typical, Hyde said.

“Additionally, our ongoing success in executing our e-commerce, merchandise expansion and store optimization strategies continues to drive strong growth above our base business,” Hyde said. “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."

The company also said it was changing its reporting methods.

“Historically, we have reported three segments — Stores, Port Supply (wholesale) and Direct-to-Consumer (e-commerce, catalog and call center transactions),” a West Marine statement read. “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.”

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