News Releases
Brookstone Earnings Expected to Soar on Strong 4th-Quarter Sales
Same store sales rise 7.8%; Specialty Retailer Projecting up to 122 % Increase over 2001 Fiscal Year Earnings
NASHUA, N.H., February 5, 2003 -- Fueled by strong fourth-quarter sales and healthy margins that continued through January, specialty retailer Brookstone, Inc. (Nasdaq: BKST) today raised its earnings projections for fiscal year 2002 to between $1.35 and $1.40 per diluted share, an increase of up to 122 percent over fiscal year results of 2001.
Same-store sales for the comparable 13-week period ended February 1, 2003 surged 7.8 percent. Total sales for the 13-week period climbed 9.1 percent to $185.2 million, compared to $169.8 million for the same period last year. Sales of the Direct-to-Consumer segment in the 13-week period rose 8.3 percent to $30.1 million on a planned reduction in circulation.
Total sales for the 52-week period ending February 1, 2003, increased 6.5 percent to $375.9 million compared to $352.9 million last year. Same-store sales for the comparable 52-week period rose 3.5 percent. Direct-to-Consumer sales increased 3.3 percent to $65.6 million.
Michael Anthony, Chairman, President and Chief Executive Officer, attributed the sales and earnings increases to strong new-product introductions, successful integration of all business channels and the Company's continued commitment to offer value over discounts to generate revenue.
"We are very pleased that our strong performance continued in the fourth quarter. We began to experience an increase in sales in the third quarter, and this performance gathered additional momentum through the Holiday shopping season and beyond into January. These results are particularly impressive in light of the overall bleak retail landscape, and are a validation of our business model which features unique products in a sea of sameness" Mr. Anthony said.
Mr. Anthony continued: "New product sales penetration is at historically high levels and were achieved without promotional activity, resulting in not only higher sales but also higher gross margins. These gains were across a broad array of categories, and were not dependent on a single item. We are pleased that our investments in product design and engineering are meeting with such a positive response from the consumer."
Mr. Anthony added: "Our Direct-to-Consumer segment showed tremendous gains, as we more effectively and efficiently honed our catalog distribution and leveraged our dynamic and expansive web site (www.brookstone.com). We expect a record financial performance in our Direct-to-Customer segment this year."
Mr. Anthony concluded: "Based on the combination of higher than previously anticipated sales and margins, we are raising our earnings projections for fiscal year 2002 to between $1.35 to $1.40 per diluted share as our fourth quarter earnings will be between $3.14 and $3.19 per diluted share. Additionally, we believe this success leaves us well positioned for fiscal year 2003 based on the amount of innovative proprietary Brookstone products in our design and engineering pipeline and our continued commitment to provide value to the consumer."
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