West Marine reports 2Q results - Trade Only Today

West Marine reports 2Q results

West Marine Inc. reported second-quarter net revenue of $251.6 million.
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West Marine Inc. reported second-quarter net revenue of $251.6 million, which was $1.6 million, or 0.6 percent less than in the same quarter last year.

Comparable-store sales increased 1.1 percent, and pretax income was $36.4 million, compared with $37.1 million in the year-earlier quarter.

The company reported net income of $21.6 million, or 86 cents a share, for the quarter that ended July 2, compared with $20.9 million, or 85 cents a share, in the quarter last year.

“We are pleased with the progress of our growth strategies, including a 27 percent increase in eCommerce and solid increases in our waterlife store sales,” said West Marine CEO Matt Hyde in a statement. “These results were in contrast to a challenging retail environment and unfavorable weather patterns seen earlier in the quarter. We believe that our growth strategies have us on track to deliver our 2016 sales and profit targets.”

Sales from eCommerce increased 26.7 percent from the quarter last year and represented 10 percent of total sales, compared with 7.9 percent a year earlier. That helped the company progress toward its goal of having eCommerce comprise 15 percent of total sales.

Sales through what the company calls waterlife stores were 48.6 percent of total sales, compared with 45.1 percent last year, as the company works toward its goal of having its larger stores comprise half of sales.

Sales in merchandise expansion product lines, which include footwear, apparel, clothing accessories, fishing products and paddlesports equipment, increased 3.3 percent, and core product sales were down 1.7 percent, compared with the same period last year.

Gross margin expanded to 32 percent of revenue, compared with 31 percent during the year-earlier quarter.

The company reiterated 2016 expectations of total revenue growth in the 1 percent to 4 percent range and pretax profit growth of 50 percent from 2015 full-year results.

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