News Releases
Brookstone Announces Second Quarter 2002 Sales
NASHUA, NH, August 8, 2002 -- Brookstone, Inc. (Nasdaq: BKST) today announced sales for the second quarter ended August 3, 2002.
Total sales for the second quarter of Fiscal 2002 increased 2.3% to $71.2 million compared to $69.6 million for the second quarter of last year. Same store sales for the comparable period decreased 3.7%. Sales in the direct to customer segment increased 9.3% to $12.6 million as compared to the same period last year.
Total sales for the first six months of Fiscal 2002 increased 2.6% to $127.9 million compared to $124.6 million for the first six months of last year. Same store sales for the first six months of Fiscal 2002 decreased 3.5%. Sales in the direct to customer segment increased 3.2% to $23.0 million as compared to the same period last year.
Based on these sales, the Company estimates a loss of $0.31 - $0.33 per diluted share for the second quarter, as compared to a loss of $0.33 per diluted share for the second quarter of last year.
Michael Anthony, Chairman, President and Chief Executive Officer, commented, "Our second quarter same store sales were somewhat below our expectations, however, we were encouraged by sales during the Father's Day period. In addition, we were pleased with the performance of our new products and their contribution to total sales, particularly in the garden category. We continued to experience decreases in sales related to travel products and in airport and tourist locations. While we had expected sales in the travel area to be challenging, we had anticipated improvements that did not materialize. New product penetration, however, is above historical levels."
Mr. Anthony continued, "Our direct marketing business, and in particular the Internet, continued to deliver substantial improvements as compared to the second quarter of last year. In addition, we were pleased with the performance of our Gardeners Eden retail stores in this key selling quarter, and we believe we are on track with this new and exciting retail concept."
Mr. Anthony added, "We expect to continue to build on the successful record of new product introduction we have established so far this year. We are very excited by the slate of new products scheduled to be in store during the third and fourth quarters of this year. Our inventory position is excellent. We estimate that inventories at the end of the second quarter will decrease between 5% and 7% as compared to the second quarter of last year."
Mr. Anthony further commented, "Given the second quarter results and current business trends, we believe earnings for the year will range between $1.00 and $1.05 per diluted share for the year, as compared to $0.63 last year. We remain optimistic for our important Holiday selling season given our Father's Day performance and new product introductions."
Brookstone, Inc. is a nationwide specialty retailer that operates 248 stores in 39 states, Puerto Rico and the District of Columbia. Typically located in high-traffic regional shopping malls and airports, the stores feature unique and innovative consumer products. The Company also operates a direct marketing business that consists of three catalogs; The Brookstone Collection, Hard-to-Find Tools and Gardeners Eden catalog; as well as an e-commerce web site at http://www.Brookstone.com.
Statements in this release which are not historical facts, including statements about the Company's confidence or expectations, earnings, anticipated operations of its e-commerce sites and those of third-party service providers, and other statements about the Company's operational outlook, are forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those set forth in such forward-looking statements. Such risks and uncertainties include, without limitation, risks of changing market conditions in the overall economy and the retail industry, consumer demand, the effectiveness of e-commerce technology and marketing efforts, availability of products, availability of adequate transportation of such products, and other factors detailed from time to time in the Company's annual and other reports filed with the Securities and Exchange Commission. Words such as "estimate," "project," "plan," "believe," "feel," "anticipate," "assume," "may," "will," "should" and similar words and phrases may identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. The Company undertakes no obligations to publicly release any revisions to these forward-looking statements or reflect events or circumstances after the date hereof.
Contacts: Philip Roizin, EVP of Finance and Administration (603) 880-9500 Robert Fusco, Investor Relations Brookstone (603) 880-9500