West Marine reports 3Q results - Trade Only Today

West Marine reports 3Q results

West Marine reported net third-quarter revenue of $191.9 million, a decrease of 1.3 percent from the same quarter last year.
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West Marine reported net third-quarter revenue of $191.9 million, a decrease of 1.3 percent from the same quarter last year.

Net income for the quarter that ended Oct. 1 was $3.9 million, or 15 cents a share, compared with $4.9 million, or 20 cents a share, last year.

Comparable-store sales increased 0.2 percent year over year and pretax income declined nearly 14 percent to $7.4 million compared with $8.6 million in the year-earlier quarter.

Gross margin was steady at 28.9 percent of revenue.

The company said selling, general and administrative expense increased by $300,000, or 0.6 percent, as higher variable selling and store depreciation expenses were partially offset by lower variable compensation.

The company said sales from e-commerce increased by 23.7 percent from the third quarter last year and represented 10.2 percent of total sales, compared with 8.2 percent for the period last year, showing continued progress toward a goal of 15 percent of total sales.

“We are pleased that our growth strategies are resulting in a 24 percent increase in eCommerce sales and solid top-line gains in our waterlife stores,” West Marine CEO Matt Hyde said in a statement.

“At the same time, we continue to make changes to our professional services business to improve its long-term profitability. Despite the challenging retail environment, we’ve increased comparable-store sales and product margins and remain on track to achieve a double-digit increase in pretax income for 2016.”

Sales through waterlife stores were 48 percent of total sales, compared with 44 percent last year, furthering the company toward its goal of 50 percent of total sales.

Sales in merchandise expansion product lines — which include footwear, apparel, clothing accessories, fishing products and paddlesports equipment — increased 2.9 percent and core product sales were down 2.2 percent from the same period last year.

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