Apparel retailer West 49 posts 70.1% higher sales at $50.7mn
25 Apr '06
3 min read
Specialty retailer West 49 Inc reported its financial results for their fourth quarter and 2006 fiscal year ended January 28, 2006. All figures are reported in Canadian dollars.
As a result of the sale of the operating assets of the former Jumbo Video and subsequent acquisition of West 49, all comparative numbers, except for the last nine weeks, in the Company's financial statements reflect discontinued operations. To provide a more useful presentation of West 49 Inc.'s results, all comparatives in this press release are to West 49 Inc. which operated as a private company until November 30, 2004 and then as a public company for the remainder of the fiscal year.
Financial Results for the Quarter Net sales for the fourth quarter of fiscal 2006 increased by 70.1 percent to $50.7 million from $29.8 million for the same period of fiscal 2005. The increase was largely attributable to the acquisition of the Off the Wall and Quebec banners, as well as the opening of eight West 49 stores during the year.
Comparable store sales for the quarter grew by 5.4 percent compared to the same period of last year, with the West 49 banner experiencing growth of 6.0 percent in comparable store sales.
Gross margin for the fourth quarter increased by 126.3 percent to $17.2 million from $7.6 million for the fourth quarter of fiscal 2005. As a percentage of net sales, gross margin increased to 33.9 percent, compared to 25.5 percent the previous year.
The 840 basis pointimprovement in gross margins was attributable to the Company's change in buying and markdown strategies earlier in the year, as well as efficiency improvements made to the Company's main distribution centre, and leveraging of buying and occupancy costs.
marketing@alchempro.com
