Watsonville, Calif. West Marine Inc. said Thursday it earned a much smaller second-quarter profit as hefty charges and a soft economy crimped the boating-gear retailer's results. Profit tumbled 79% to $4.4 million, from $20.8 million a year earlier.
The latest quarter was hurt by a $14.6 million tax accounting charge that lowered profit by 66? per share. Also, cooperation with a Securities and Exchange Commission investigation cost the company a penny per share, and an asset impairment charge totaled 6? per share.
Excluding items, profit declined only slightly to $20.5 million from $20.8 million a year earlier.
Sales also slid to $226.7 million from $247.1 million, and same-store sales dropped 7.8%.
Chief executive Geoff Eisenberg said results for the second quarter reflect ongoing softness in boating activity and the economy.