Weiner's Stores Inc. Reports Second Quarter and First Six Months of 2000 Sales
HOUSTON--(BUSINESS WIRE)--Aug. 4, 2000--Weiner's Stores Inc. (OTCBB:WEIR) announced today that in its second quarter ended July 29, 2000, sales decreased 21.6% compared to the same period last year. By comparison, sales in the second quarter of 1999 increased 16.0% compared to the same period in 1998. Sales were $62.3 million in the second quarter of 2000 compared to $79.5 million in the second quarter of 1999. In the second quarter of 2000, comparable store sales decreased 26.1% compared to the same period last year. By comparison, in the second quarter of 1999, comparable store sales increased 10.9% compared to the same period in 1998.
For the six-month period ended July 29, 2000, sales decreased 13.7% to $128.7 million from $149.1 million in the same period last year. By comparison, for the first half of fiscal 1999, sales increased 14.6% compared to the same period in 1998. In the first six months of fiscal 2000, comparable store sales decreased 17.9% compared to the same period last year. By comparison, in the first half of fiscal 1999, comparable store sales increased 11.6% compared to the same period in 1998.
Mr. Raymond J. Miller, president and chief executive officer, stated, "We are extremely disappointed with the sales results for the second quarter and first six months of fiscal year 2000. Our customers responded in a favorable manner to Misses' tops and bottoms, Women's denim jeans, off-price designer fragrances, Bed Bath Etc, toys, electronics, Men's and Kid's basics and Men's woven shirts. Unfortunately, these businesses were not able to offset the continued decline in branded athletic shoes, Levi's(R) products, branded athletic apparel in all genders and the general softness in all apparel areas with especially soft sales in Men's and Kids' classifications."
Mr. Miller also stated, "In the first six months of fiscal 2000 and in the important back-to-school period of the second quarter, the Company has de-emphasized the use of 'free layaway' due to both the change in revenue recognition rules and the high layaway cancellation rates that it experienced last year. The reduction in layaway transactions in the second quarter and first half of 2000 as they relate to the same period last year, are expected to generate a higher layaway fulfillment percentage in August and September 2000 as compared to the same period last year."
Mr. Miller further stated, "Due to the change in fiscal year 2000 in revenue recognition of layaway sales and leased department sales, sales are not comparable to last year. As of the end of the second quarter and first six months of fiscal year 2000, the Company has deferred approximately $7.5 million and $8.3 million in layaway sales, respectively, to future periods and has not recorded approximately $0.9 million and $1.9 million, respectively, in leased department sales. Had these changes occurred, the sales decrease for the first quarter and first six months of fiscal 2000 would have been 11.1% and 6.8%, respectively.
On July 22, 2000, the Company opened two new stores in Mobile, Ala., completing its fiscal year 2000 plan to open ten new stores. During the first six months of fiscal year 2000, the Company closed one store and it expects to close four additional under-performing stores during the remainder of fiscal 2000.
The Company also announced today that on July 18, 2000, it amended its $40.0 million Revolving Credit Agreement. The Amendment, among other things, revised certain financial covenant tests based on the sales and EBITDA trend of the first four months of fiscal 2000.
The Company expects to report financial results for the second quarter and first six months of fiscal 2000 on or about August 17, 2000. |
