The Bombay Company Annunces 9% Drop In March Revenue
Furniture World News
The Bombay Company, Inc. reported that revenue for the five-week period ended April 2, 2005 declined 9% to $46.4 million compared to $50.8 million for the five-week period ended April 3, 2004. Same store sales for stores open more than one year declined 12% for the five-week period. For the nine weeks ended April 2, 2005, total revenue decreased 6% to $81.3 million compared to $86.2 million for the corresponding period of the prior year. Same store sales declined 10% on a year-to-date basis.
James D. Carreker, Chairman and Chief Executive Officer, noted, "Consumer demand remains challenging. In addition to concerns about external factors, such as gasoline prices, the month was adversely affected by the very early Easter, which shifted from April into March. As a result, we lost a day of selling which accounted for 3% to 4% of the decline in same store sales. Softness in demand continues in big ticket items, including bedroom and dining room furniture, as well as textiles. As we enter April, weekly comparisons become less challenging and we will benefit from the additional day due to the calendar shift. We intend to be appropriately aggressive in our sales promotion and value pricing to drive what we expect to be an improved April. Although increased promotions will reduce margins for our first quarter, such actions are consistent with prior annual earnings guidance."
The Bombay Company, Inc. designs, sources and markets a unique line of home accessories, wall decor and furniture through 495 retail outlets, specialty catalogs and the internet in the U.S. and internationally.
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