West 49 Inc's gross margin for Q2 up 76.5% to $9 mn
11 Sep '06
3 min read
West 49 Inc, Canada's leading action sport retailer, reported its financial results for its second quarter of fiscal 2007, ended July 29, 2006. All figures are reported in Canadian dollars.
"Our second quarter results reflect the strength of the acquisitions we made last year, our continued momentum in store openings, and the successes we have had in improving our gross margin," said Sam Baio, Chief Executive Officer of West 49 Inc.
"We posted strong sales growth attributable to our acquisitions and our increased number of stores, and we achieved a significant improvement in gross margin as a result of our successful buying and markdown strategies implemented part way through last year."
"With the seasonality attributable to being an apparel retailer that primarily targets school-aged kids, our EBITDA(1) and our net loss for the quarter were consistent with management's expectations, and importantly, were improvements over the second quarter of last year."
Financial Results for the Quarter
Net sales for the second quarter of fiscal 2007 increased 49.2 percent to $39.7 million from $26.6 million for the second quarter of last year. Most of the growth was attributable to last year's acquisitions of banners Off the Wall, Amnesia/Arsenic, D-Tox, and online retailer, and 20 new stores opened since the second quarter of last year.
Overall comparable store sales grew 0.3 percent(2), compared to the same period last year when the Company experienced comparable store sales growth of 11.3 percent.
marketing@alchempro.com
