ZANY announced after today's bell that sales were up 45 percent--not even counting the sales from its new website.
Love this stock for making easy trades. Hopefully it will move tomorrow.
I figured this company was going to do well, and now that the street is beginning to recognize that brick-and-click stores have a better business model than strictly e-tailers, I think one could regard ZANY as a growth stock.
The company has more than 100 stores and is expanding the count. Has also made some reference in the past to "planned acquisitions."
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Zany Brainy Reports Sales for Six Week 1999 Holiday Selling Season; Comparable Store Sales Up 8%
Business Wire - January 05, 2000 17:36
KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--Jan. 5, 2000--Zany Brainy, Inc., (Nasdaq National Market: ZANY), a leading specialty retailer of high quality toys, games, books and multimedia products, today reported holiday sales for the six week period ended December 25, 1999.
Sales for the period increased 45% to $87.6 million compared with sales of $60.5 million in the comparable period in 1998. Comparable store sales increased 8%.
"Our strong holiday sales reflect our continued success in growing the Zany Brainy brand," said Keith C. Spurgeon, Chairman and CEO of Zany Brainy, Inc. "The initiatives implemented during the 1999 holiday season underscore our commitment to continually improve the ways in which we serve our customers. To make Zany Brainy more accessible and available, we offered customers two new ways to shop for the holidays: on our website, www.ZanyBrainy.com, and by calling a toll-free number (877-WOW-KIDS) to order products from our holiday gift guide/catalog. Each of these new channels exceeded our expectations by effectively expanding customer access to the Zany Brainy experience while generating strong sales. These sales were not included in our comparable store results; however if catalog and e-commerce sales from trade areas adjacent to our stores had been included, comparable stores sales for the six week period ended December 25, 1999 would have been 11%."
"Our holiday gift guide was distributed later this year than it was last year," Mr. Spurgeon said, "and, as a result, comparable store sales for the eight week period ended December 25, 1999 increased 4%, or 6% if adjacent trade area catalog and e-commerce sales were included, reflecting this later mailing."
Mr. Spurgeon concluded, "Our high growth strategy of merging bricks, clicks and catalog to build the Zany Brainy brand is firmly in place. During the holiday season we were well-positioned with over 103 stores in 26 states, an online presence and a toll-free gift guide/catalog, all distributing our distinctive merchandise to more customers than ever before."
Zany Brainy marketing initiatives drove demand for key products like the new line of smart toys and Zany Brainy's proprietary brands, such as Hugs'N'Snugs(TM) dolls and accessories, Blue Sky(TM) kid's room decor and Techno Kids(TM) electronics. These and other items included in the holiday gift guide/catalog comprised a significant part of the Company's holiday sales. The gift guide/catalog was distributed to approximately 3 million households, both new and existing customers. In addition, Pokemon products were in high demand this holiday season.
ZanyBrainy.com, launched in mid-November, was successful in meeting heavy consumer demand for its products this past holiday season. Every in-stock item ordered at ZanyBrainy.com through December 22 was shipped to customers before Christmas. In addition, in just its first month of operation, ZanyBrainy.com was recognized as one of the top five toy e-tailing sites by Gomez Advisors, a leading provider of e-commerce research and analysis. ZanyBrainy.com received its highest marks in Ease of Use, Customer Confidence and Overall Cost.
ZanyBrainy.com shares Zany Brainy, Inc.'s commitment to excellent customer service. By training over 100 KIDsultant(R) customer service telemarketing representatives to handle customer inquiries, Zany Brainy was able to translate the brand's superior in-store experience to the online customer. Most of these KIDsultants(R) went through an extensive in-store training process to become experts on Zany Brainy products and policies. ZanyBrainy.com prides itself as being the leader in toy e-tailing customer service.
About Zany Brainy
Zany Brainy, Inc. is a leading and rapidly growing specialty retailer of high quality toys, games, books and multimedia products for kids. The Company is a different kind of toy store with a unique product mission and a passionate commitment to its customers. Zany Brainy believes learning should be fun. Its products entertain, educate and spark the imaginations of children up to 12 years of age. The Company combines distinctive merchandise offering with superior customer service and daily in-store events to create an interactive, "kid-friendly" and exciting shopping experience for children and adults. The Company presently operates 103 stores in 26 states.
About ZanyBrainy.com
ZanyBrainy.com (www.ZanyBrainy.com), a joint venture between Zany Brainy, Inc. and Online Retail Partners LLC, is dedicated to offering products that entertain and educate children while instilling a sense of wonder and a lifelong passion for learning. Setting a precedent for e-commerce today, ZanyBrainy.com brings the magic of Zany Brainy's unique in-store experience to the Web to create an innovative toy shopping experience. It provides online shoppers with guidance and recommendations from real-life KIDsultants(R), allows users to virtually try a product with its exclusive "Try Me" feature and permits consumers to shop however they want-by age, category, brand and more.
Certain statements in this report, including statements regarding the growth and extension of our brand through an e-commerce shopping site and catalog, are forward looking statements within the meaning of the Private Securities Litigation Reform Act. Actual results may differ materially from those indicated in such statements due to a number of factors, including unanticipated competitive and operational challenges in connection with operation of our stores and e-commerce site and the impact of catalog and e-commerce sales on our retail stores. Additional information on factors that may affect the business and financial results of the Company can be found in filings of the Company with the Securities and Exchange Commission. |
