The Bombay Company Reposts 83% Earnings Increase

Furniture World News

The Bombay Company, Inc. (NYSE: BBA) reported that earnings increased to $11.7 million or $0.32 per share for the three months ended January 29, 2000 compared to $11.1 million or $0.30 per share last year. For the year ended January 29, 2000, earnings increased to $7.3 million or $0.20 per share compared to net income of $4.0 million or $0.11 per share last year, an improvement of 83%. Sales for the three months ended January 29, 2000 increased 7% to $139.6 million compared to $130.5 million for the same period last year. For the year ended January 29, 2000, sales increased 10% to $390.9 million compared to $356.7 million for the same period last year. Same store sales for Bombay stores in existence for more than one year increased 3% for the quarter and 5% for the year. Carmie Mehrlander, President and Chief Executive Officer, stated, "We are encouraged by the increase in earnings for this past year and are optimistic about our future. Our goal has been to reach beyond our traditional core customer base, to captivate new customers and to delight and surprise them in new ways. During Fiscal 1999, we succeeded in elevating Bombay to a gift headquarters for consumers. Additionally, we were particularly pleased with the growth in our Christmas business. Our priority to grow the accessories business was clearly the right step for Bombay and we will continue to develop that business going forward. While furniture sales did not meet our expectations, we have taken steps to achieve stronger performance in the furniture area for Fiscal 2000." Ms. Mehrlander further noted, "During Fiscal 2000, we plan to capitalize on our strong balance sheet and leverage our core competencies of product design and sourcing to increase shareholder value. We believe that our current stock price does not reflect the potential of this company. Several new initiatives are planned including the launch of our new wholesale division, Bailey Street Trading Company. These strategies will improve profitability and secure our place as a premier provider of classic and timeless home furnishings in the future." The Company also announced today that its Board of Directors voted to extend its common stock repurchase program to acquire up to an additional $10 million of its outstanding common stock. Since inception of the program through the fourth quarter, the Company repurchased a total of 2,984,616 shares at a cost of $14.7 million. The Company said it may repurchase shares from time to time in the open market or through privately negotiated transactions, depending on prevailing market conditions, alternative uses of capital and other factors. The Bombay Company, Inc. is a specialty retailer marketing classic and timeless furniture, prints and accessories through a network of over 400 Bombay Company stores and its mail order operations in the United States and Canada as well as over the internet at http://www.bombayco.com.