News Releases
Brookstone Q3 Same Store Sales Increase 7.0%
NASHUA, NH, November 6, 2002 -- Brookstone, Inc. (Nasdaq: BKST) today announced same store sales for the third quarter ended November 2, 2002 increased 7.0%.
Total sales for the third quarter of Fiscal 2002 increased 7.4% to $62.9 million compared to $58.5 million for the third quarter of last year. Same store sales for the comparable period increased 7.0%. Sales in the Direct to Customer segment decreased 6.6% to $12.6 million as compared to the same period last year on a planned reduction in circulation.
Total sales for the first nine months of Fiscal 2002 increased 4.2% to $190.7 million compared to $183.1 million for the first nine months of last year. Same store sales for the first nine months of Fiscal 2002 decreased 0.3% as compared to the same period last year. Sales in the Direct to Customer segment decreased 0.5% to $35.5 million as compared to the same period last year.
Michael Anthony, Chairman, President and Chief Executive Officer, commented, "We are pleased with our results for this quarter, particularly in light of the difficult retail environment. Sales across all retail formats including mall, airport and tourist locations performed well this quarter. We have experienced substantial successes in new product introductions across a wide array of categories, and new product penetration has substantially improved from last year's levels. It is also important to note that this success has been achieved through product performance and without increases in discounting or promotional activity. Sales of our Direct to Customer segment decreased on a planned decrease in circulation, and profitability in this segment increased substantially in the third quarter as compared to the comparable period last year."
Mr. Anthony continued, "The situation at West Coast ports has delayed receipt of certain goods from the third to fourth quarter of this year, but had no impact on sales during the third quarter as our in stock levels were excellent. At this point, due to our proactive efforts in accelerating the receipt of certain goods, diverting product to east coast ports, and the judicious use of air freight, we feel that absent another labor disruption, sales in the fourth quarter should not be materially affected by the West Coast port labor situation."
Mr. Anthony continued, "We feel that given our third quarter sales results, our net loss for the quarter will be at the low end of the $0.80 - $0.85 per share range we had previously announced, as compared to last year's third quarter loss of $1.07 per share. We remain optimistic about the upcoming Holiday season."
Brookstone, Inc. is a nationwide specialty retailer that operates 254 Brookstone Brand stores nationwide and in Puerto Rico. Typically located in high-traffic regional shopping malls and airports, the stores feature unique and innovative consumer products. The Company also operates two stores under the Gardeners Eden Brand, and the Company also operates a direct marketing business that consists of three catalogs; Brookstone, Hard-to-Find Tools and Gardeners Eden; 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