Brookstone Net Loss Nearly Doubles
Gadgets and gifts cataloger/retailer Brookstone (Nasdaq: BKST), which mails The Brookstone Collection, Hard-to-Find Tools, and Gardeners Eden catalogs, reported a net loss of $9.0 million for the quarter ended Nov. 3, compared with a net loss of $4.9 million for the comparable period of last year. At the same time, third-quarter net sales decreased 8%, to $58.5 million from $63.8 million a year ago. Same-store sales for the quarter decreased 17%.
“We had originally estimated same-store sales to be down 10%-12% for the quarter based on exceptionally strong scooter sales during the third quarter of last year, and prior to [Sept. 11] we were tracking above our target levels for the quarter,” Michael Anthony, chairman/president/CEO of the Nashua, NH-based company, said in a statement. “Since the terrorist attacks, however, sales have been below targeted levels and have had a negative impact on earnings.”
New York City Presence Hurts Saks Don’t tell cataloger/retailer Saks (NYSE: SKS) that location is everything. It already knows. Saks blames its 9% decline in overall on the Sept. 11 terrorist attacks, which especially hurt business at its flagship store in New York. Total third-quarter sales were $1.42 billion, compared with $1.57 billion last year. The third-quarter loss before certain items totaled $23.5 million, a turnaround from last year’s third-quarter earnings of $1.0 million.
Catalog and Internet sales dropped 17%, to $25.7 million from $31.0 million last year. In addition to the Saks retail chain and the high-end Folio apparel catalog, the Birmingham, AL-based company includes the Proffitt’s, McRae’s, Younkers, Herberger’s, and Carson Pirie Scott retail chains.
Catalog Sales Up at Restoration Hardware Though its quarterly direct-to-customer sales, which include catalog and Internet, increased 32%, to $6.6 million, Restoration Hardware (Nasdaq: RSTO) sank deeper into the red. The Corte Madera, CA-based cataloger/retailer of home furnishings and gifts posted a net loss (before preferred stock charges) of $7.9 million for the three months ended Nov. 3. For the comparable period of 2000, the net loss had been $5.1 million.
Total net sales for the quarter decreased 5%, to $76.6 million from $81.0 million a year ago. Comparable store sales fell 9%. Selling, general and administrative (SGA) expenses as a percentage of sales increased to 36.4% from 33.6% last year.