Bombay Announces August Revenue

Furniture World Magazine

The Bombay Company, Inc. (NYSE:BBA) reported that total revenue declined 6% to $35.4 million for the four-week period ended August 28, 2004 compared to $37.7 million for the four-week period ended August 30, 2003. Same store sales for stores opened more than one year declined 19% compared to an 18% increase the prior year. For the thirty weeks ended August 28, 2004, total revenue declined 2% to $281.5 million from last year's $287.3 million while same store sales declined 14% compared to a 24% increase last year. Revenue from non-store activity, including Internet, Mail Order, Bailey Street Trading Company and International, was 10% of total revenue for the current year compared to 9% for last year for both the month and year-to-date periods. James D. Carreker, Chairman and Chief Executive Officer stated, "August sales were in line with our expectations. We continue to experience softness in demand and the month was negatively impacted by adverse conditions in Florida with the hurricane and the shift in Labor Day weekend into September. However, we are encouraged by the improving trends which saw sales strengthen throughout the month. The introduction of new merchandise has been evident in our stores and has driven both an increase in the average transaction size and an improving trend in transaction count. We are encouraged by the double- digit growth in our internet operations as well as successes in our BombayKIDS format." Mr. Carreker further noted, "September will be the most difficult month we face from a two year same store growth perspective. However, we expect to see improvement in the same stores sales trend relative to July and August." The Bombay Company, Inc. designs, sources and markets a unique line of home accessories, wall decor and furniture through 474 retail outlets, specialty catalogs and the Internet in the U.S. and internationally.