Sales at fye stores were down 6.7% on a same-store basis in Trans World Entertainment’s second fiscal quarter ended August 4, the company reported Thursday. That was a lot better than the over-all 14.3% decline in fye sales, driven lower by a 10% decline in store count. This was the third consecutive quarter with fye sales declines in the mid-teens (see “FYE’s 16+% Sales Declines Continue”).
The company is continuing to close stores; it closed 12 stores, 5% of the total, just in the quarter according to CFO John Anderson in the conference call, ending the quarter with 241.
Sales in the chain’s “lifestyle” category, which includes games and merch, were down 1.7% for the quarter, which the company attributed to tough comps against the fidget spinner craze last summer. Fidget spinners accounted for 4% of fye sales in the same quarter a year ago.
Total revenue for the company was flat, with the fye sales declines offset by increases in etailz sales.
Profits were also weak, with a $9.5 net loss for the company In the quarter, vs. a loss of $5.6 million in the year ago period. Fye contributed a $6.6 million operating loss, vs. an operating loss of $5.5 million.
Although the company has been freeing up cash by cutting inventory, available cash still declined to $14.7 million at the end of the quarter vs. $26.2 million a year ago. And Trans World had drawn $6.3 million on its line at the end of the quarter this year, vs. a zero loan balance a year ago.
In the conference call (transcript via Seeking Alpha), CEO Michael Feurer pointed to improving fye sales through the quarter as a sign for optimism, with comp store sales down only 0.7% with lifestyle sales up 8% in July, the final month of the quarter.
Store Count, Same Store Sales Declines
Posted by ICv2 on August 31, 2018 @ 4:38 am CT
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