Reversal of Fortune: Trans World Posts 34% Q4 Profit Surge1 Mar, 2012 By: Erik Gruenwedel
Last major standalone entertainment retailer posts $2.2 million profit in 2011 compared to $31 million loss in 2010
Trans World Entertainment Corp. March 1 reported fourth-quarter (ended Jan. 28) net income of $16.5 million, up 34% from net income of $12.4 million during the previous-year period. For the 2011 fiscal year, Trans World reported net income of $2.2 million, compared with a loss of $31 million in 2010.
Albany, N.Y.-based Trans World operates 390 f.y.e. (For Your Entertainment) retail stores selling new-release movies and music CDs, among other ancillary items. It also operates Second Spin stores that buy and sell used packaged media.
The results are significant considering consumer migration toward lower-cost home entertainment rental options such as kiosks and subscription video-on-demand.
Indeed, comparable store sales for the quarter were down 1%, compared with the same quarter last year. For the quarter, total sales decreased 17% to $193.1 million, compared with $231.3 million in 2010. For the year, revenue topped $542 million, compared with sales of $652 million in 2010.
During the quarter, Trans World operated an average of 427 stores compared to 514 stores last year, a 17% decline.
“The fourth quarter marked our eighth consecutive quarter of improved operating results,” said CEO Robert Higgins. “These results reflect the commitment, hard work and dedication of our associates, who provide our customers with a strong selection, value and exceptional customer service. We look forward to continued success in fiscal 2012.”