Trans World narrows losses
Albany, N.Y. Trans World Entertainment Group narrowed its losses in its first quarter as the chain saw some improvement in sales of music and DVDs.
Trans World operates the f.y.e. (For Your Entertainment) chain of stores, along with Suncoast Motion Pictures and Saturday Matinee stores.
Trans World reported a net loss of $11.4 million for the quarter ended May 1, compared with a net loss of $13.7 million last year.
Total sales fell 18% to $156.5 million, as the company operated an average of 548 stores during the quarter, or 23% less than last year.
Trans World closed 18 stores during the quarter and acquired five others. Meanwhile, same-store sales dropped 3%.
Nevertheless, Trans World chairman and CEO Robert Higgins said he was encouraged by the results in the company’s two biggest sales categories: CDs and DVDs.
“We made progress in the first quarter but we still have a lot to accomplish,” Higgins said.
First-quarter gross profit was $51.5 million, compared with $65.8 million for the same period last year.
The reduction in gross profit as a percentage of sales was due to lower vendor allowances, the company said.
Trans World finished the quarter with $21.3 million in cash, compared with $8.2 million last year. The company had no outstanding borrowings on its credit line at the end of the quarter, compared with $29 million outstanding at the end of first quarter 2009.
Hibbett reports strong Q1, raises outlook
BIRMINGHAM, Ala. Hibbett Sports reported that net sales for the first quarter ended May 1 increased 17% to $184.5 million compared with $157.7 million for the first quarter ended May 2, 2009. Comparable-store sales increased 14.5%.
Net income for the first quarter of Fiscal 2011 increased 58.9% to $17.3 million compared with $10.9 million for the first quarter of fiscal 2010. Earnings per diluted share increased 56.8% to 59 cents compared with 38 cents for the first quarter of fiscal 2010.
Jeff Rosenthal, president and CEO, stated, “The strong sales trend we experienced in the fourth quarter of last year continued throughout the first quarter of this year and into the second quarter. Our overall positive sales performance was driven by double-digit increases in footwear and apparel. The broad-based improvement and exceptional operating margin give us confidence in our optimistic outlook for the remainder of the year.”
The company increased its earnings guidance for fiscal 2011 to a range of $1.35 to $1.50 per diluted share based on mid- to high-single-digit increases in comparable-store sales for the full year.
Target prepares for hurricane season
MINNEAPOLIS Target announced that it will serve as a destination for consumers looking to prepare for hurricane season during National Hurricane Preparedness Week, May 23 to 29.
Target pointed to the number of services it offers including a 24-hour daily command center that monitors global events that could impact its customers and associates. The retailer also said its stores will remain open as long as possible during an emergency to help communities get the supplies they need and holds merchandise in its distribution centers in advance of hurricane season so that it can get supplies to stores as quickly as possible.
“We want our guests to know that before and after a crisis, communities can count on Target,” says Brad Brekke, VP Target assets protection.