West Marine today reported a 49 percent increase in pretax income for fiscal 2010, with net revenues for the year up 5.8 percent from 2009.
For the year, the company reported $14.2 million in pretax income, $622.8 million in net revenue and a 6.3 percent increase in comparable-store sales.
Gross profit for 2010 was $175.6 million, an increase of $14.7 million, compared with 2009. As a percentage of net revenues, gross profit increased by 0.9 percent, to 28.2 percent, compared with a gross profit margin of 27.3 percent last year.
"We are pleased with the progress we are making with our ongoing plans to revitalize and grow the business. We are proud that the actions we have taken and the strategies we are pursuing have delivered West Marine's best net income performance in a long time," CEO Geoff Eisenberg said in a statement.
Net income for the year was $13.2 million, or 57 cents a diluted share. This was an improvement of $900,000, or 6.9 percent, from net income in 2009 of $12.4 million, or 55 cents a diluted share.
Total inventory at the end of 2010 was $201.6 million, a $5.0 million, or 2.5 percent, increase from last year, and a 1.8 percent increase on an inventory-per-square-foot basis. Inventory turns for 2010 were up slightly versus last year, the company said.
Net revenues for the fourth quarter, which ended Jan. 1, were $107.3 million, an increase of $3.4 million, or 3.3 percent, from net revenues of $103.9 million for the corresponding period last year. Comparable-store sales increased by $1.3 million, or 1.6 percent, from last year.
The net loss for the fourth quarter of 2010 was $19.8 million, or 88 cents a share. The 2010 fourth quarter's net loss was $7 million greater than the net loss of $12.8 million, or 57 cents a share, for the quarter last year.
"Our earnings guidance for 2011 assumes that the market for boating supplies and related merchandise will remain soft. Accordingly, comparable-store sales are anticipated to be in the range of flat to up approximately 1 percent, with total revenues of approximately $629 million to $635 million," the company said.
"Pretax income as a percentage of sales is anticipated to increase modestly," West Marine added. "We expect the resulting pretax income to be in the range of approximately $17.5 million to $19.0 million, or an increase of approximately 23 percent to 34 percent over 2010.
"We are targeting approximately $20 million in capital spending for 2011, with the majority driven by investment in our real estate optimization strategy," the company added.