Trans World Entertainment Doubles Quarterly Loss21 Aug, 2014 By: Erik Gruenwedel
Double-diget growth in Blu-ray Disc sales offset declining DVD and music CD
Trans World Entertainment Corp. Aug. 21 reported a second-quarter (ended Aug. 2) net loss of more than $5 million, which was double the net loss of $2.5 million during the prior-year period.
Albany, N.Y.-based Trans World, which operates the f.y.e. (For Your Entertainment) retail chain, in addition to Suncoast and Second Spin used-product stores, announced revenue dropped 11% to $71.9 million, due in large part to a 7% decline in store count. Trans World operated 328 stores in the quarter compared with 353 stores a year ago.
TWEC stores primarily sell packaged media such as DVD and Blu-ray Disc movies, TV shows and music CDs.
Same-store sales dropped 3.4%, which CEO Robert Higgins attributed to weak mall traffic and declining packaged music sales. A majority of f.y.e. stores are located within shopping malls. Trans World opened and/or relocated four stores in the quarter, including opening a new f.y.e. concept store in Woodbridge, N.J., that focuses on non-media products such as trend.
Meanwhile, Higgins told analysts on the call same-store video sales slipped 1% despite double-diget comp sale increases of Blu-ray Disc titles. The category represented 44% of quarterly revenue, which was unchanged from the prior-year period. Music comp sales fell 12%, representing 29% of quarterly revenue compared with 32% a year ago. The company said it is seeing increases in sales of vinyl releases.
Trend comp sales, which include T-shirts, bobbleheads, posters and related non-media items, increased 5%.
"Despite the challenging results for the quarter, we are approaching the second half optimistically as we completed many of our merchandising initiatives, which resulted in improved results in July,” Higgins said in a statement.