Trans World Entertainment Narrows Q2 Loss20 Aug, 2015 By: Erik Gruenwedel
Trans World Entertainment Corp. Aug. 20 reported a second-quarter (ended Aug. 1) net loss of $3 million, down $2.1 million from a loss off $5.1 million during the prior-year period. Revenue decreased 6.2% to $67.5 million, compared with $71.9 million a year ago. At the end of the quarter, TWE operated 308 stores, compared with 327 stores at the same time a year ago, a 5.8% decline.
TWE, which operates the f.y.e. (For Your Entertainment) retail chain, in addition to Suncoast, Second Spin stores and related websites, said the quarter was highlighted by a comparable store sales increase of 30% in emerging trend and electronics categories, which represented nearly 30% of the company’s sales mix in the quarter.
Trend, which includes action figures, bobbleheads, posters, T-shirts, and related collectibles, has become a significant revenue driver for entertainment retailers, including Atlanta-based MovieStop, Amarillo, Tex.-based Hastings Entertainment, and the nation’s largest video game chain, GameStop.
Trend comparable store sales increased 44.4%, representing 20% ($13.5 million) of quarterly sales, compared with 13% ($9.3 million) a year ago.
“We continue to take advantage of opportunities to strengthen our assortment and trend category mix,” CEO Mike Feurer said on the company's fiscal call.
Video comp sales, which includes DVD and Blu-ray Disc, decreased 7.9%, representing 41% ($27.6 million) of sales, compared with 45% ($32.3 million) of sales a year ago.
Music comp sales declined 8.7%, representing 27% of sales compared with 30% a year ago. Electronics increased 8.8%, accounting for 10% ($6.7 million) of sales, compared with 9% ($6.5 million) a year ago.