Bombay Company post net loss of $8mn for quarter ended April 30, 2005
20 May '05
4 min read
For the first quarter, revenue from retail stores increased 1% as revenue generated from net new stores more than offset the 5% decline in same store sales. Revenue from the Internet and mail order declined $2.3 million for the quarter while revenue from our wholesale channels declined approximately $0.6 million. The average retail ticket increased 2% compared to the prior year while total transaction count, including new store sales activity, fell 2% compared to the prior year.
Gross margin for the first quarter declined 220 basis points primarily due to the deleveraging effect of fixed costs on the lower revenue base. Buying and store occupancy costs increased $1.4 million due to the higher store count and increased 140 basis points from 22.1% of revenue to 23.5% of revenue this year, due to the negative same store sales. Product margins declined 80 basis points due primarily to the deleveraging effect of logistics costs on the lower revenue base.
SG&A expenses increased $0.7 million or 100 basis points but included approximately $1.0 million associated with the Accenture merchandise strategy study and higher audit fees as a result of the Fiscal 2004 restatement. Other corporate overhead expenses and four-wall store SG&A expenses were tightly controlled. Marketing expense declined 30 basis points due to changes in the strategy, although there were higher spending levels later in the quarter.
The Company ended the quarter with $151.5 millwere tightly controlled. Marketing expense declined 30 basis points due to changes in the strategy, although there were higher spending levels later in the quarter.
marketing@alchempro.com
