Trans World's 4Q Results Were Down27 Feb, 2003 By: Joan Villa
Typical of the slump experienced by other music retailers, Trans World Entertainment reported a 5.3 percent decline in fourth-quarter revenue, to $484 million, and a 20 percent drop in net income, to $27.4 million, versus the same year-ago period. Same-store sales declined 3 percent for the quarter and 5 percent for the year.
"We had a relatively strong conclusion to an otherwise challenging year," observed chairman and CEO Robert J. Higgins. "Our holiday sales compared well to other retailers' results, and earnings were in line with our expectations."
Total sales for the fiscal year ended Feb. 1 were $1.3 billion, 8 percent less than last year. However, Trans World also has $41 million in recorded goodwill that is currently being assessed and may be written off, which would create a net loss for the fourth quarter of $1.7 million and a net loss for fiscal 2002 of $28.5 million, the company reported.
Looking ahead, Trans World anticipates benefiting from recently installed listening and viewing stations and the anticipated closure of competitor stores, Higgins said. Management expects earnings in the range of 15 cents to 20 cents per share for fiscal year 2003 on total sales similar to 2002.
“Our strategy will focus on further developing the FYE brand, broadening our product offering, and expanding Trans World's market share in the DVD and video game categories,” he added.