WXX.to 1.11 +.13, West 49 Inc. reports Holiday sales
- Leading action sport retailer achieves strong comparable store sales growth -
BURLINGTON, ON, Jan. 10 /CNW/ - West 49 Inc. (TSX: WXX - News; the "Company"), Canada's leading action sport retailer, today reported its sales performance for the fiscal 2007 Holiday selling season. Sales for the five-week period ended December 30, 2006 increased 22.8% to $36.1 million compared to $29.4 million for the corresponding period last year, with 59% of the growth being attributable to the opening of 26 new stores in the past twelve months and 41% of the increase being attributable to higher comparable store sales.
For the five-week period, the Company reported comparable store sales growth of 9.4% over the corresponding period a year ago, with the Company's core West 49 banner posting strong comparable store sales growth of 12.4%.
"We achieved record sales for the Holiday selling season, as our higher store count compared to last year and our strong comparable store results delivered significant growth," said Sam Baio, Chief Executive Officer of West 49 Inc. "Gross margin rates so far this quarter are more consistent with that of the third quarter, than of last year's Holiday selling season, which was characterized by exceptionally high margins. This year's Holiday margins were impacted somewhat by our strategic pricing of key items to drive traffic in anticipation of a late start to the selling season, as well as markdowns on certain products as a result of the unseasonably warm weather in the majority of our markets. However, overall, we are pleased with the strength and continued relevance of our brands and banners."
For the fourth quarter-to-date, or the nine-week period ended December 30, 2006, sales increased 25.2% to $51.7 million from $41.3 million for the same period last year. Quarter-to-date comparable store sales grew by 9.4%(1) compared to the year before, with the West 49 banner achieving comparable store sales growth of 11.0%.
About West 49 Inc.
West 49 Inc. is a multi-banner specialty retailer of apparel, footwear and accessories related to skateboarding, snowboarding, and surfing, as well as the music industry, and fashion-forward young women. The Company primarily targets "Generation Y" customers (ages 10 through 18). West 49 Inc. operates over 120 stores in nine provinces, under the banners West 49, Billabong, Off The Wall, Amnesia/Arsenic, D-Tox, Duke's Northshore, and online retailer www.boardzone.com. West 49 Inc.'s common shares are listed on the Toronto Stock Exchange under the symbol WXX. The Company has approximately 64 million shares outstanding. |
