Brookstone Loses $9M for Quarter
Third-quarter net sales fell 8.3 percent to $58.5 million from $63.8 million. Same-store sales for the fiscal third quarter declined 17 percent compared with last year.
"The [Sept. 11 terrorist attacks] had a significant impact on our performance this quarter," said Michael Anthony, chairman, president and CEO of the Nashua, NH, company. "We had originally estimated same-store sales to be down 10 percent to 12 percent for the quarter based on exceptionally strong scooter sales during the third quarter of last year, and prior to the 11th we were tracking above our target levels for the quarter. Since the terrorist attacks, however, sales have been below targeted levels and have had a negative impact on earnings.
"There are signs of encouragement in the third-quarter results," he said. "Customer response to new products, which are a key driver of our sales, was positive, as sales of these products increased as a percentage of total sales in the quarter. Additionally, these products carry higher gross margin rates and contributed to the increase of 90 basis points in our net material rate."
The company's direct marketing business includes three catalogs, The Brookstone Collection, Hard-to-Find Tools and Gardeners Eden, as well as an e-commerce site at http://www.Brookstone.com.