Losses Widen at TransWorld13 Nov, 2002 By: Joan Villa
Same-store sales dipped 5 percent on declining revenues for music and video retailer Trans World Entertainment, which posted a widening net loss for the third quarter ended Nov. 2.
Trans World's stock dipped more than 7 percent to $3.60 in anticipation of the news, released after market close Nov. 13.
The 888-store chain said total sales declined to $251.2 million for the quarter versus $273.4 million in the year-ago period. The company's net loss widened to $14.1 million including a one-time charge of $5.3 million to write down an investment in bankrupt Data Play Inc., which recorded and distributed digital content for hand-held consumer entertainment devices. Trans World reported a net loss of $11.6 million in third quarter, 2001.
"Our third quarter results for sales and earnings were in-line with our previously stated expectations,” reported chairman and CEO Robert J. Higgins in a statement. “Although the quarter overall was disappointing, results in recent weeks have been encouraging, including sales in the music category."
Although cautious about consumer spending, Higgins said “recent positive momentum” could carry into the fourth quarter due to the strong lineup of new releases in music, video and games.
“The continued installation of our listening and viewing stations will help us capitalize on this opportunity to improve our operating results," he added.