Trans World slides on weak music sales15 Aug, 2002 By: Joan Villa
Despite a continued focus on DVD, music chain Trans World Entertainment widened its net loss in the second quarter and expects flat to negative same-store sales through 2002.
The Albany, N.Y.-based retailer reported a 9 percent drop in revenue to $267.5 million on 6 percent lower same-store sales in the second quarter ended Aug. 3 versus the year-ago period. The 650-store chain incurred a net loss of $6.4 million, or 16 cents per share, compared to a net loss of $4 million, or 10 cents per share, in the comparable quarter of 2001.
Due to weak music sales in mall-based FYE and freestanding locations Coconuts Music and Movies, Strawberries Music, Spec's and Planet Music, the revenue decline was “in line” with the company's expectations, noted chairman and CEO Robert J. Higgins.
“We continue to focus on growing our DVD, video game and electronics categories to offset continued weakness in music, and to further develop our entertainment offering," he noted. "In addition, the rollout of the listening and viewing stations in our stores remains on schedule and will be substantially complete in time for the holiday selling season."