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West Marine reports 3Q results - Trade Only Today

West Marine reports 3Q results

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West Marine today reported higher third-quarter revenue, but lower profits and said comparable-store sales rose less than 1 percent.

"Comparable-store sales showed slight gains for the quarter and we experienced stronger results from our growth strategies in merchandise expansion and store optimization,” West Marine CEO Matt Hyde said in a statement. “We remain focused on repositioning West Marine into a broader, waterlife outfitter and growing sales of core boating products."

The company said net revenue for the quarter that ended Sept. 27 was 196.5 million, up 1.6 percent from $193.4 million in the same quarter a year earlier.

Profit of $4.9 million, or 20 cents a diluted share, compared with earnings of $6.5 million, or 26 cents a share, in the 2013 quarter. Excluding an $800,000 tax valuation allowance related to the company’s Canadian operations, net income was $5.8 million, or 23 cents a share.

For the full year the company now expects earnings per share to be in the range of about 15 to 20 cents.

The company reaffirmed its full-year pretax income and EBITDA guidance. Pretax income is expected to be in the range of about $8.5 million to $11 million and EBITDA is expected to be in the range of about $27.5 million to $30 million. In the prior year, EBITDA was $30.7 million.

The company said sales from its e-commerce website were down 1.6 percent, compared with the 2014 quarter, and represented 7 percent of total sales, compared with 7.1 percent for the same period last year.

Overall, the company said, its results this year have been affected by the replatform of its e-commerce website. However, with the replatform behind it, the company said its e-commerce sales returned to positive year-over-year growth in mid-July and continued to improve throughout the quarter.

West Marine said it remains committed to its three- to five-year goal for e-commerce to represent 15 percent of total sales.

Sales through the company’s optimized stores increased to 41 percent of total sales, compared with 33.6 percent last year. The company said its year-over-year increase supports its three to five-year goal to deliver 50 percent of total sales through optimized stores.

The company said sales in product lines that include footwear, apparel, clothing accessories, fishing products and paddle sports equipment were up by 13.7 percent for the quarter and core product sales were down 1.9 percent.

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