Trans World Entertainment Q4 Profit Drops5 Mar, 2015 By: Erik Gruenwedel
Trans World Entertainment Corp. March 5 reported fourth-quarter (ended Jan. 31) net income of $11.7 million, down 6.4% from net income of $12.5 million during the previous-year period.
TWEC, which operates the f.y.e. (For Your Entertainment) retail chain, Suncoast and Second Spin used stores and websites, said revenue decreased 8.8% to $126.9 million from $139.2 million. The decline was in large part due to a 8.6% reduction in stores from 339 to 310 locations.
Notably, comparable store sales for the quarter were flat compared to the same quarter last year. The flat comp represented TWEC’s best Q4 comp performance in a number of years.
Meanwhile, a weak release slate and underperforming box office contributed to an 8% decline in comparable video store sales. Video, which includes DVD and Blu-ray Disc titles, represented 41% of revenue, compared with 44% a year ago.
Music comp sales (CDs and vinyl albums) dropped 5%, representing 24% of sales — down from 26% a year ago.
Video game comp sales declined 16%, impacted by a 40% plunge in hardware sales. Games represented 4% of sales, the same as a year ago.
Trend (T-shirts, posters, Bobbleheads, action figures, etc.) comp store sales increased 30%, representing 20% of sales compared with 15% a year ago. Electronics comp sales increased 8%, representing 11% of business from 10% a year ago. The two growth categories delivered a combined 21% increase in same-store sales.
“As these categories become a larger portion of our business, we expect they will have a positive impact on both total comparable store sales and margin going forward,” CEO Mike Feurer said on the fiscal call.