Skip to main content

West Marine reports 3Q results

Net revenues rose 0.7 percent at West Marine in the third quarter to $193.4 million and comparable store sales increased by 0.9 percent.

E-commerce sales leaped 20.3 percent following a push by the company to ramp up its direct-to-consumer business.

CEO Matthew Hyde said in a conference call with investors and analysts that building the e-commerce business was the most important strategy at West Marine.

“Since we've been focusing investing in this area, our results have continued to improve,” Hyde said. “If you isolate domestic e-commerce sales the increase was more dramatic, at a 31.9 percent increase.”

A new website platform that’s expected to launch near the end of the year will help the company continue to drive growth, Hyde said. Part of the strategy is to incentivize smaller stores with less merchandise sell from the larger online assortment.

Net income for the quarter that ended Sept. 28 was $6.3 million, or 26 cents a diluted share, compared with $10.3 million, or 43 cents a share, in the third quarter last year. Excluding the impact of a $1.5 million valuation allowance recorded during the 2013 quarter, which resulted from a California tax law change, net income would have been $7.9 million or 32 cents a share.

“Sales showed modest improvement, driven primarily by higher growth from our strategies,” Hyde said in a statement. “During the third quarter we opened three flagship stores, we achieved stronger sales in our merchandise expansion categories and we experienced good momentum in our e-commerce business. These results reinforce our belief that we need to continue to invest in West Marine to deliver steady, profitable growth."

Addressing 2013 guidance, the company said it expects diluted earnings per share to be in the range of about 37 to 42 cents. Comparable-store sales are expected to be down 2 to 4 percent (using a revised definition of those sales) and total revenue is expected to be in the range of $650 million to $660 million, the company said. West Marine anticipates that capital expenditures for the year will be in the range of $25 million to $29 million.

“When you take a look at boat sales, we've been encouraged from a unit standpoint,” Hyde said. “[Consumers] tend to be focusing right now on smaller boats, which isn't necessarily our sweet spot, but as boat sales go up we think this is definitely positive for West Marine in the future.”

— Reagan Haynes

Related

Teaser-Graphic-6-29-22_2

2022 Women in the Industry Summit, Leadership Panel, Awards Ceremony & Reception

MONDAY, SEPTEMBER 26, 2022, MARRIOTT TAMPA WATER STREET, TAMPA, FL

DealerOutlook

Seabins Coming to Lake Erie

The devices, deployed as part of a pilot program, skim and collect debris from the water, including microplastics. Meanwhile, MBIA announces scholarship funds.

1_BOATSETTER

Boatsetter Reports Uptick in Rentals

The on-water experience company has seen triple-digit growth in pontoon and party-boat rentals, as well as fishing and yacht charters.

1_SMARTGYRO

Smartgyro Signs Distributors, Hires Sales Manager

The company said the three U.S. distributors, working with Bob Walker, will help expand its dealer network and brand recognition.

1_YEARGIN

The Upside of a Downturn

Economic challenges should push you to develop a strategy that helps you weather the storm and come out stronger on the other side.

1_TRAVELIFT.COOP

Marine Travelift Launches Co-op Program

The company received its first student, a University of Wisconsin engineering major, in the seven-month paid co-op.

1_JULY4

Trade Only Today Returns Tuesday

The e-newsletter will not publish July 4 in observance of Independence Day. We wish everyone a safe holiday weekend.

1_ORR.FUNDS

ORR Announces Federally Funded Projects

The U.S. Economic Development Administration prioritized outdoor recreation for the first time