West Marine today reported a 3.3 percent increase in net revenues for the fourth quarter, which ended Jan. 1, and a 5.8 percent increase in net revenues for 2010.
Fourth-quarter net revenues were $107.3 million, compared with $103.9 million in the year-earlier period.
Comparable-store sales for the fourth quarter increased 1.6 percent, or $1.3 million. Revenues increased $6.4 million from stores that opened during the fourth quarter of 2009 and fiscal 2010.
However, the impact of stores that closed during these periods effectively reduced revenues by $4.8 million. The majority of the closings occurred in connection with the company's real estate optimization program. West Marine is evolving into a company with fewer, larger stores.
"We are delighted to have finished 2010 with overall sales growth of 5.8 percent, to $623 million, in total net revenues. The revitalization of West Marine during the last few years, in an environment that has been so very challenging for boating, has resulted in both total sales and comparable-store growth for six consecutive quarters when you adjust for the calendar shift in 2008 and evaluate the reporting periods so that both 2008 and 2009 are based on the same number of weeks," CEO Geoff Eisenberg said in a statement.
Net revenues for the 52 weeks that ended Jan. 1 were $622.8 million, an increase of $34.4 million, or 5.8 percent, from net revenues of $588.4 million for the same period a year earlier.
The increase was primarily attributable to a comparable-store sales increase of 6.3 percent, or $30.7 million, the company said. Stores that opened during the fourth quarter of 2009 and fiscal 2010 generated $30.4 million in sales; however, stores that closed during these periods effectively reduced net revenues by $25.8 million.
West Marine has scheduled a conference call for 1 p.m. (EST) Feb. 24 to discuss fourth-quarter and full-year 2010 financial results.
West Marine, the largest specialty retailer of boating supplies and accessories, has 327 company-operated stores in 38 states, Puerto Rico and Canada and three franchised stores in Turkey.