News Releases
Brookstone Announces Holiday Same Store Sales Surge 7.8%
Earnings for Year to Materially Exceed Previously Announced Range of $1.00 - $1.05
NASHUA, NH, January 7, 2003 -- Brookstone, Inc. (Nasdaq: BKST) today announced holiday same store sales for the two month period ended January 4, 2003 surged 7.8%. Sales of the Direct to Customer segment increased 8.6% on a planned reduction in circulation, to $25.9 million. During this period, total company sales increased 8.7%, to $167.5 million, as compared to the same period last year.
Year-to-date same store sales increased 3.3%, and sales of the Direct to Customer segment increased 3.1% to $61.4 million, as compared to the same period last year. Year-to-date total company sales increased 6.2% to $358.2 million, as compared to the same period last year.
Michael Anthony, Chairman, President and Chief Executive Officer, commented, "We are extremely pleased with our Holiday sales performance; these results continued the strong trends we established in the third quarter. All channels experienced strong sales as a result of our successful new product offerings. New product sales penetration is at historically high levels. It is also remarkable to note that these sales results were achieved without promotional activity, resulting in not only higher sales but also higher gross margins. We believe that this is a validation of our business model, and demonstrates the resiliency of our concept, which focuses on superior product at attractive price points. In addition, we are pleased that our investments in product design and engineering are finding strong positive response with consumers."
Mr. Anthony continued, "Due to this combination of higher than previously anticipated sales and margins, we expect earnings to be materially above our previously announced range of $1.00 - $1.05 per share for the fiscal year, which was already a 60% increase in earnings per share over the prior fiscal year. Earnings for the quarter and year will be affected by January sales and physical inventory results, among other factors."
Brookstone, Inc. is a nationwide specialty retailer that operates 256 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 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