West 49 Inc's gross margin for Q2 up 76.5% to $9 mn
11 Sep '06
3 min read
Comparable store sales from the Company's core West 49 banner decreased 2.9 percent following exceptionally strong comparable store sales growth of 13.9 percent in the second quarter the year before.
Gross margin for the quarter increased by 76.5 percent to $9.0 million compared to $5.1 million for the second quarter of fiscal 2006. As a percentage of net sales, gross margin increased to 22.7 percent compared to 19.2 percent the previous year, with the improvement being primarily attributable to the revised buying and markdown strategies implemented part way through last year.
Gross margin for the six-month period doubled to $16.8 million, compared with $8.4 million the year before. As a percentage of net sales, gross margin increased to 22.3 percent compared to 18.5 percent the previous year.
Other Highlights
During the quarter, the Company relocated and expanded three stores and opened seven new stores, including one West 49 store, four D-Tox stores - including two outside of Quebec (one in Calgary, Alberta and one in Moncton, New Brunswick) - one Billabong store, and the first store under the new
banner, Duke's Northshore. The Company closed one West 49 store (Belleville, Ontario) as previously reported.
West 49 Inc will host a conference call on Monday, September 11, 2006 at 9:00 a.m. ET to discuss its results for the second quarter of fiscal 2007.
West 49 Inc is a multi-banner specialty retailer of apparel, footwear and accessories related to skateboarding, snowboarding, and surfing, as well as the music industry, and fashion-forward young women.
marketing@alchempro.com
