The Right Start Inc. Reports Profit Turnaround and 26% Same Store Sales Increase
WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--May 19, 1999--The Right Start Inc. (Nasdaq:RTST - news) today reported significantly improved results for the quarter ended May 1, 1999.
For the quarter, the Company reported net earnings of $11,000, compared to a net loss of $1,207,000, as total sales increased 18.6% to $10,721,000 from $9,041,000 last year. Same store sales, or sales for stores open at least 13 months, increased 26.0% for the quarter.
Jerry R. Welch, Chairman and Chief Executive Officer, said, ''We are very pleased with our first quarter results. The changes that we made in our merchandising and site location strategies a year ago are beginning to produce significant results. Our 26% same store sales increase for the quarter was excellent and our new neighborhood street stores all performed very well. We look forward to a productive 1999.''
The Company reported that during the quarter it opened one new neighborhood street store in Costa Mesa, California and ended the quarter with 41 stores in operation. As previously announced, the Company anticipates opening 22-24 new stores for the fiscal year ending January 29, 2000.
Mr. Welch also stated, ''At year end, we announced that we were forming a separate subsidiary, rightstart.com, to engage in e-commerce activities. We have engaged Guidance Solutions of Marina del Rey, CA to assist in the development and operation of our Web site.
''We have been working at a fast pace to get rightstart.com operational and we expect rightstart.com to be open for business by July 1. We are excited about the potential of e-commerce and the potential to leverage The Right Start brand over the Internet.''
The Right Start Inc. is a leading merchant of unique, high-quality products for infants and young children up to age four. The Company was founded in 1985 and capitalizes on the increasing number of baby boomers who have become middle- to upper-income parents. Th Company's products are distributed through its 41 retail stores and The Right Start catalog. |
