West Marine reports 1Q results

West Marine said revenues fell 1 percent in the first quarter.
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West Marine said revenues fell 1 percent in the first quarter, edging down to $129.1 million from $130.4 million last year, and comparable-store sales were flat.

The company said it had a pretax loss of $12.1 million for the quarter that ended April 1, compared with a loss of $15.2 million last year.

West Marine said it had a net loss for the quarter of $7.3 million, or 29 cents a share, compared with a loss of $9.1 million, or 37 cents a share, last year.

“We are pleased that the improvements in our cost structure and our strategies are resulting in solid bottom-line gains,” West Marine CEO Matt Hyde said in a statement. “Despite the challenging weather and retail environment in the quarter, we’ve maintained our comparable-store sales and improved gross margins over last year.”

The company said e-commerce sales increased by 9.5 percent from the first quarter of 2016 and represented 13.2 percent of total sales, compared with 11.9 percent for the same period last year — showing progress toward a goal of 15 percent of total sales.

Sales in merchandise expansion product lines, which include footwear, apparel, clothing accessories, fishing products and paddlesports equipment, increased slightly, but core product sales were down 0.8 percent from the same period last year.

Gross margin improved to 25.5 percent of net revenues, compared with 25.2 percent in the same period last year. Selling, general and administrative expense decreased year-over-year by $3.2 million.

The company reiterated its most recently issued full-year 2017 pretax income guidance of $13 million to $16 million on comparable-store sales increases of 1 percent to 2 percent for the full year.

Total revenue for the fiscal year is projected to be $707 million to $715 million.

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