Bombay Announces 94% Increase in Fiscal 2002 Earnings

Furniture World Magazine

The Bombay Company, Inc. (NYSE:BBA) announced that earnings for the year ended February 1, 2003 were $7.2 million or $0.22 per diluted share compared to earnings of $3.7 million or $0.11 per diluted share for the prior fiscal year. For the fourth quarter, earnings increased 19% to $13.8 million or $0.41 per diluted share compared to $11.7 million or $0.35 per diluted share for the quarter ended February 2, 2002. For the year ended February 1, 2003, revenue was $494.0 million compared to $437.5 million for the prior fiscal year. Same store sales increased 5% for the year while revenue from non-store activity increased to 7% this year compared to 4% last year. Revenue for the quarter ended February 1, 2003 grew to $189.3 million compared to $152.5 million for the prior year. Same store sales for Bombay stores in existence for more than one year increased 19% for the quarter. Revenue from non-store activity amounted to 10% of total revenue for the period compared to 7% for the fourth quarter last year. James D. Carreker, Chairman of the Board of Directors, stated, "We are highly encouraged by the results of the second half of the year and are confident that the management team is making the right decisions. Management has concentrated on the basics -- establishing key price points, adding merchandise intensity to the store, investing in marketing and simplifying store tasks. The changes resulted in strong sales momentum, which has continued into Fiscal 2003, helping us to reclaim market share. Going forward, we have identified several opportunities to build on this foundation as we drive toward improved operating results. Most importantly, the Company has returned to a performance driven culture focused on delivering shareholder value." For the quarter, gross margins improved 90 basis points as a result of leveraging fixed buying and occupancy costs which declined to 13.0% of revenue from 15.3% of revenue last year. Selling, general and administrative costs, including a $1.3 million pre-tax charge relating to the settlement of a California wage and hour case, were higher as a percentage of revenue due to increases in advertising, insurance, performance based compensation as well as the litigation settlement. With respect to the Company's other channels and initiatives, Internet and Mail Order annual revenues grew 73% to $20.6 million from $11.9 million last year. Bailey Street exceeded its revenue goals realizing $8.4 million in annual revenue compared to $2.2 million last year. International revenues more than doubled to $3.5 million for the year. All non-store operations contributed incrementally to bottom line profitability. New stores have performed well and the Company is particularly pleased with the early results from its combination Bombay and Bombay KIDS format which it plans to roll out during 2003. The Bombay Company, Inc. designs, sources and markets a unique line of home accessories, wall decor and furniture through over 422 retail outlets, specialty catalogs and the internet in the U.S. and internationally.