Reports Flat Comp for the Third Quarter
Unveils New Format in 10 Stores
“Given the challenging retail backdrop, we are encouraged by our results and confident in the progress we are making. We delivered flat comparable store sales and our third consecutive quarter of narrowed operating losses,” commented
During the quarter, the Company opened two new stores and remodeled two stores. The Company will be opening an additional four stores and remodeling two stores in the fourth quarter, bringing total new and remodeled stores to 10 by the end of the fourth quarter.
Mr. Feurer added, “Our new stores expand our merchandise selection and enhance the presentation of our emerging categories of trend and electronics, while maintaining a strong presence in our heritage media categories. Early indications are the stores are being well received by engaged customers; the associates are very excited about the concept; our industry partners are enthusiastic; and the store performance has been encouraging. These stores further advance our transformation of the customer experience toward becoming the dominant entertainment and pop culture centric experience in the marketplace.”
Total sales for the quarter decreased 6.3% to
Gross profit for the quarter was
For the thirty nine weeks ended
Gross profit for the thirty-nine weeks ended
Inventory was
Mr. Feurer added, “In addition to new and remodeled stores, we are utilizing our capital resources to make investments in our merchandise diversification and presentation, customer experience, technology and strategic opportunities. We have made significant progress and continue to test, evaluate and implement strategic initiatives to accelerate the repositioning of our company.”
During the third quarter, the Company repurchased approximately 61,000 shares of common stock at an average price of
Certain statements in this release set forth management’s intentions, plans, beliefs, expectations or predictions of the future based on current facts and analyses. Actual results may differ materially from those indicated in such statements. 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
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TRANS WORLD ENTERTAINMENT CORPORATION | ||||||||||||||||||||||||||
Financial Results | ||||||||||||||||||||||||||
STATEMENTS OF OPERATIONS: | ||||||||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||||||||||||||||
October 31, | % to | November 1, | % to | October 31, | % to | November 1, | % to | |||||||||||||||||||
2015 | Sales | 2014 | Sales | 2015 | Sales | 2014 | Sales | |||||||||||||||||||
Net sales | $ | 67,925 | $ | 72,456 | $ | 213,339 | $ | 231,580 | ||||||||||||||||||
Cost of sales | 41,245 | 60.7 | % | 43,922 | 60.6 | % | 128,699 | 60.3 | % | 142,222 | 61.4 | % | ||||||||||||||
Gross profit | 26,680 | 39.3 | % | 28,534 | 39.4 | % | 84,640 | 39.7 | % | 89,358 | 38.6 | % | ||||||||||||||
Selling, general and | ||||||||||||||||||||||||||
administrative expenses | 29,248 | 43.1 | % | 31,567 | 43.6 | % | 87,080 | 40.8 | % | 95,179 | 41.1 | % | ||||||||||||||
Depreciation and amortization | 1,227 | 1.8 | % | 953 | 1.3 | % | 3,238 | 1.5 | % | 2,593 | 1.1 | % | ||||||||||||||
Loss from operations | (3,795 | ) | -5.6 | % | (3,986 | ) | -5.5 | % | (5,678 | ) | -2.7 | % | (8,414 | ) | -3.6 | % | ||||||||||
Interest expense, net | 488 | 0.7 | % | 469 | 0.6 | % | 1,367 | 0.6 | % | 1,429 | 0.6 | % | ||||||||||||||
Loss before income taxes | (4,283 | ) | -6.3 | % | (4,455 | ) | -6.1 | % | (7,045 | ) | -3.3 | % | (9,843 | ) | -4.2 | % | ||||||||||
Income tax expense | 45 | 0.1 | % | 21 | 0.0 | % | 134 | 0.1 | % | 115 | 0.1 | % | ||||||||||||||
Net loss | $ | (4,328 | ) | -6.4 | % | $ | (4,476 | ) | -6.2 | % | $ | (7,179 | ) | -3.4 | % | $ | (9,958 | ) | -4.3 | % | ||||||
Basic and diluted loss per common share: | ||||||||||||||||||||||||||
Basic and diluted loss per share | $ | (0.14 | ) | $ | (0.14 | ) | $ | (0.23 | ) | $ | (0.31 | ) | ||||||||||||||
Weighted average number of | ||||||||||||||||||||||||||
common shares outstanding – basic and diluted | 31,107 | 31,625 | 31,140 | 31,869 | ||||||||||||||||||||||
SELECTED BALANCE SHEET CAPTIONS: | October 31, | November 1, | ||||||||||||||||||||||||
(in thousands, except store data) | 2015 | 2014 | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 74,854 | $ | 79,366 | ||||||||||||||||||||||
Merchandise inventory | 149,524 | 158,017 | ||||||||||||||||||||||||
Fixed assets (net) | 27,282 | 16,709 | ||||||||||||||||||||||||
Accounts payable | 65,471 | 69,335 | ||||||||||||||||||||||||
Borrowings under line of credit | – | – | ||||||||||||||||||||||||
Long-term capital lease, less current portion | – | 143 | ||||||||||||||||||||||||
Stores in operation, end of period | 309 | 327 | ||||||||||||||||||||||||
Stores in operation, average during the period | 309 | 328 | ||||||||||||||||||||||||
Contact:Trans World Entertainment John Anderson Chief Financial Officer (518) 452-1242 Contact: Financial Relations BoardMarilynn Meek () (212) 827-3773