Weiner's Stores Inc. Reports Second Quarter and Six Months 1999 Results of Operations
HOUSTON--(BUSINESS WIRE)--Aug. 18, 1999--Weiner's Stores Inc.
(OTC BB:WEIR) announced net income of $0.5 million, or $0.03 per share
of common stock for its second quarter ended July 31, 1999 compared to
the net loss of $0.6 million, or $0.03 per share of common stock, for
the second quarter of 1998. For the second quarter of 1999, earnings
before interest, taxes, depreciation and amortization increased 151%
to $1.8 million from $0.7 million in the second quarter of 1998. Net
income for the six months ended July 31, 1999 was $2.5 million, or
$0.14 per share of common stock, compared to net income of $8,000, or
less than $0.01 per share of common stock in the first six months of
1998.
Weiner's Stores had previously announced that sales for the
second quarter and first six months ended July 31, 1999 were $79.5
million and $149.1 million, respectively, as compared to $68.5 million
in the second quarter of 1998 and $130.1 million in the first six
months of 1998. Comparable store sales for the second quarter of 1999
increased 10.9%, while comparable store sales for the first six months
of 1999 were up 11.6%.
Raymond J. Miller, executive vice president, chief operating
officer and chief financial officer, stated, "We are pleased with the
sales results for both the second quarter and the first six months of
1999. Strong sales increases were posted in the Bed Bath Etc
department, women's sportswear, girls' apparel and accessories, school
uniforms and men's apparel. Our customer continues to respond
favorably to our marketing and merchandise campaign which, in the
first six months of 1999 generated approximately a 15% increase in
transactions and a 9% increase in items per transaction as compared to
the first six months of 1998. Our marketing and merchandise strategy
in 1999 has allowed us to strategically lower our gross margin
percentage, increase our sales, and reduce operating expense as a
percentage of sales to 30.7% for the six-month period ended July 31,
1999 as compared to 34.5% for the comparable period in 1998."
As previously announced, the company opened six new stores in the
first half of fiscal 1999. Miller stated that operating expenses for
the second quarter and first six months of 1999 were increased by $0.3
million and $0.2 million due to a change in the accounting for new
store pre-opening expenses. Prior to 1999, pre-opening expenses were
amortized over the course of the fiscal year in which the store
opened. Beginning in fiscal 1999, the expenses are recorded as
incurred. |
