Trans World Entertainment to Open 20 New Stores in 201315 Mar, 2013 By: Erik Gruenwedel
Same-store video sales increased 4%, as chain posts $33.7 million profit in fiscal-year 2012
Trans World Entertainment Corp. remains bullish on packaged media, with plans to open 20 f.y.e. (For Your Entertainment) stores in 2013. CEO Bob Higgins said the new stores would be expected to turn a profit in the first 12 months of operation.
“We think 18 of those stores will make money in year one and the other two will make money in year two,” Higgins said in March 7 a fiscal call March.
The Albany, N.Y.-based chain reported net income of $33.7 million in fiscal 2012, which ended Feb. 2, 2013. The profit compared with net income of $2.2 million during the previous-year fiscal year.
The income was boosted by the $22.8 million sale of real estate in Florida. Excluding the transaction, Trans World posted a $10.9 million profit in 2012. In the quarter, Trans World issued a $15 million cash dividend, the first dividend in the company’s history.
Trans World, which operates f.y.e. and Second Spin retail stores, and related websites, generated 15% less in total revenue at $458.5 million. It operated 14% fewer stores than it did in 2011 with 378 locations.
Same-store sales in the fourth quarter dipped 3% compared with the same quarter a year ago. Total sales for the period decreased 15% to $163.4 million. Net income in the quarter topped $12.2 million.
Fourth quarter video sales, which include DVD and Blu-ray Disc, were flat, driven by increased sales of Blu-ray titles and slightly fewer DVD units. For the year, same-stores video sales increased 4% — underscoring the ongoing resilience of packaged media at retail.
Video accounted for 43% of total sales — the largest category within f.y.e. and Second Spin stores.