West Marine reports 2Q results


Citing cold and rainy spring weather that limited recreational boating, West Marine reported declines in second-quarter sales and profits and lowered its full-year guidance.

The California-based boating supplies and accessories retailer said net income for the quarter that ended June 29 was $22.3 million, or 91 cents a diluted share, compared with $22.6 million, or 95 cents a share, for the quarter last year.

Net revenues for the 13-week period were $236.8 million, a decrease of 2.8 percent from $243.6 million in the 2012 quarter.

Lowering its 2013 full-year guidance, the company said pretax income is now expected to be in the range of $15.5 million to $17.5 million, compared with pretax income of $24.3 million for 2012. Diluted earnings per share are now expected to be about 37 to 42 cents.

“The quarter came in much weaker than expected due to reduced recreational boating usage as a consequence of the continued unfavorable weather,” West Marine CEO Matt Hyde said in a statement. “We have been able to partially offset these results with our growth strategies and by sales in areas experiencing a more typical boating season. Our teams are responding by managing our expenses and controlling inventories while we continue to invest in our future growth strategies with a focus on strengthening West Marine.”

Consumer-direct sales were up 12 percent in the second quarter, driven by strategic investments in e-commerce, the company said Thursday. Sales in merchandise expansion categories, which include footwear, apparel, clothing accessories, fishing products and paddle sports equipment, were up 4.3 percent, with core usage-related product sales down 3.5 percent, compared with last year.

Second-quarter pretax income was $37.7 million, down 1.1 percent from $38.1 million in the quarter last year.

The company said second-quarter liquidity continued to improve, with cash increasing from $37.1 million last year to $45.8 million. Total inventory at the end of the second quarter was $243.1 million, a 2.3 percent decline from last year.

The company remained debt-free at the end of the quarter, with $115.8 million available on its revolving credit line.

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