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1 cent vs $0.00 expectation
Trend-Lines Reports Fiscal 1998 Third Quarter Results
Comparable Store Sales Increased 3.8%
REVERE, Mass., Jan. 8 /PRNewswire/ -- Trend-Lines, Inc. (Nasdaq: TRND - news) today announced financial results for its third fiscal quarter and nine months ended November 28, 1998.
Net sales for the third quarter of fiscal 1998 were $60.1 million, a 14.7% increase over fiscal 1997 third quarter sales of $52.4 million. Comparable store sales during the quarter, which included 165 Woodworkers Warehouse/Post Tool and Golf Day stores combined, increased 3.8% from the third quarter ended November 29, 1997. The Company reported net income for the third quarter of approximately $59,000, or $0.01 per share, compared with net income of approximately $854,000, or $0.08 per share, for the quarter ended November 29, 1997.
For the nine months ended November 28, 1998, net sales were $184.6 million, a 15.2% increase over last year's nine month sales of $160.3 million. Comparable store sales during this nine month period increased 1.2%. The Company reported a net after-tax loss for the nine months ended November 28, 1998 of approximately $8.2 million, or $0.77 per share, compared with net income of approximately $1.7 million, or $0.15 per share, for the nine months ended November 29, 1997.
Catalog sales for the third quarter decreased by 23.6% to $9.7 million, compared to the third fiscal quarter of 1997. Catalog sales continued to decline as a percentage of total sales as the Company discontinues catalog mailings to areas where it operates retail stores. Retail sales increased 27% during the quarter to $50.4 million, compared with the prior year period. The increase in retail sales was largely attributable to operating 55 more stores than last year, a 31% increase in the number of operating stores.
This change in sales mix was the primary cause for a reduction in gross margin to 30.6% from 31.0%, since catalog sales have a higher gross margin than retail sales. SG&A expenses were higher primarily due to the fact that the Company was operating 230 stores at the end of the third quarter of 1998 compared with 175 stores at the end of last year's third quarter.
Stanley Black, Chairman and Chief Executive Officer, commented, ''As previously reported, our distribution center is functioning smoothly. After incurring significant losses in our first and second quarters due to problems with the installation of our warehouse management system, we are very pleased to return to profitability. Now that our distribution difficulties are behind us, it is time to look to the future and continue to focus our attention on regaining sales and earnings
momentum.''
During the third quarter, Trend-Lines added nine new tool stores and eight new golf stores, and closed two tool stores and two golf stores. For the nine months ended November 28, 1998, the Company opened 21 tool and 14 golf stores, and closed six tool stores and three golf stores. The Company plans to open one additional tool store during the fourth quarter of fiscal 1998.
Trend-Lines, Inc. is a specialty retailer of woodworking tools and accessories sold through its nationally distributed Trend-Lines mail order catalog and through 121 Woodworkers Warehouse retail stores, as of November 28, 1998, located in New England, New York, New Jersey, Delaware and Pennsylvania, as well as 27 Post Tool stores located in California and Nevada. The Company is also a specialty retailer of golf equipment and supplies sold through its nationally distributed Golf Day mail order catalog and through 82 Golf Day retail stores, as of November 28, 1998, located in New England, New York, New Jersey, Delaware, Pennsylvania and California. |
