Skip to main content

West Marine reports 1Q results

Citing lingering chilly spring weather, West Marine said its first-quarter revenue was $113.3 million, a decline of less than 1 percent from a year earlier, and comparable-store sales were down 1.7 percent.

The California-based boating supplies and accessories retailer reported a net loss for the quarter that ended March 29 of $11 million, or 46 cents a share, missing projections by 8 cents, compared with a loss of $9.7 million, or 41 cents a share, in the first quarter last year.

The company will continue to invest in strategies that will make it less dependent on weather, CEO Matt Hyde said.

"We had mixed results this quarter,” Hyde said in a statement. “The top line reflected disappointing retail sales, largely driven by a cold and snowy winter and spring. We also experienced, as expected, soft sales as a result of the initial transition to our new eCommerce platform, though recently we've begun to recover from the transition.”

Weak results were partially offset by gains in wholesale sales, solid growth in the regions where spring weather has been more typical and continued success of the company’s growth strategies, Hyde said.

“Despite the tough quarter, we remain optimistic with the positive results from our strategies and will continue to invest in them as we reposition to be less dependent on weather influences,” Hyde said.

“While the first quarter was disappointing, it is still early in the season for us,” he said. “Our ability to hit sales and earnings guidance will be dependent on a continuing return to more normal weather as we move into peak season, which would drive boat usage and sales of our core products.”

In areas with more typical spring weather, West Marine saw favorable sales trends. Additionally, most strategic investments are now taking effect for 2014.

“Given the sales softness thus far, we are managing expenses while we continue to invest in our growth strategies,” Hyde said. “At this point, given the above factors, we are maintaining our guidance for the year.”

Pretax income for the year as a whole is expected to be in a range of $16 million to $18.5 million, the company said. GAAP diluted earnings per share is expected to be in the range of 39 cents to 45 cents.

Comparable-store sales for 2014 as a whole are anticipated to be up 3.5 to 6 percent, and total revenue is expected to be in the range of $695 million to $710 million.

EBITDA is estimated to be in the range of $35 million to $37.5 million and capital expenditures are anticipated in the range of $30 million to $34 million.

Related

norm

Who Is Watching Us Fish?

NOAA has started electronic tracking of charter boats in the Gulf of Mexico. Could recreational anglers be next?

1_COX

Cox Expands Partnership with Gulf Yachts

The diesel outboard manufacturer said the agreement adds Bahrain and the UAE to Gulf’s territories in Qatar, Oman, Kuwait and Lebanon.

1_EVOY

Evoy Announces New Round of Capital

The Norwegian electric inboard and outboard manufacturer said it will use the funds to further develop its propulsion systems.

1_NEWPORTPRODUCTS

Newport Show Accepting Applications for Product Awards

The Newport for New Products program recognizes new boats, gear and more based on design, innovation and value to the consumer.

1_FREEDOMWISC

Freedom Boat Club Expands in Wisconsin

Parent Brunswick Corp. said it will open five new locations for this year’s boating season.

1_HEESE_TRIGG

ABC 2022: That’s a Wrap

The American Boating Congress concluded Friday with an award presentation, discussions with representatives, a midterm election report from political analyst Charlie Cook, and a panel discussion about electrification.

1_GODFREYELKHART

Godfrey Breaks Ground on Expansion

The company said the additional manufacturing and warehouse space in Elkhart, Ind., will enable an increase in production.

1_HIGHFIELD

Highfield USA Hires New President

The RIB builder said Christophe Lavigne will help develop the brand and operations in North America.