West Marine reports 2017 2Q results

Publish date:

Retailer West Marine reported a net second-quarter profit of $21 million, slightly less than it earned in the same quarter last year.

The company said net income for the period that ended July 1 was $21.2 million, or 84 cents a share, compared with $21.6 million, or 86 cents a share, for the comparable quarter in 2016.

Second-quarter 2017 net revenue was $247.2 million, a decrease of 1.7 percent from the same period last year. Comparable-store sales were down 1.2 percent and pretax income was $36 million, compared with $36.4 million a year earlier.

The company said it incurred expenses during the quarter of $1.4 million associated with its pending merger with private-equity firm Monomoy Capital Partners and recorded a $600,000 charge related to the reclassification of accumulated foreign currency translation balances to selling, general and administrative expense as a result of cessation of operations in Canada.

Those charges were partially offset by a $1.1 million credit related to a supplier refund for prior-year overbilling. Adjusting for these unique events, the company said it improved second-quarter pretax profit by $700,000.

Gross margin improved to 36.5 percent, compared with 35.5 percent during the 2016 quarter. Lower promotional and clearance activity, along with lower professional sales as a percentage of total revenue, resulted in the improved margin, the company said.

Selling, general and administrative expense increased year over year by $1.4 million, primarily because of $1.4 million in merger-related expenses.

Inventory at the end of the second quarter was $243.4 million, down $10.2 million from the same period in 2016.

As of July 1 the company had cash and cash equivalents totaling $113.3 million, compared with $89.6 million at the same point in 2016.

The company said its net income for the first six months this year was $14 million, or 55 cents a share, compared with $12.5 million, or 50 cents a share, at the same time last year.


Snapper Quotas in Flux Again

NOAA Fisheries wants Gulf Coast states to revert back to the data collection model that the recreational fishing community has widely criticized.