USA: Right Start Net Sales Up 37 Per Cent, Like For Like Falls
Consolidated net sales for the thirteen weeks ended July 29, 2000 were $14.7m, an increase of 37.1 per cent over sales of $10.7m for the thirteen weeks ended July 31, 1999.
Included in consolidated net sales for the quarter were retail stores sales of $10,757,000, catalog sales of $277,000, online sales, net of promotional discounts, of $3,516,000 and shipping and handling revenues of $144,000.
This compares to retail sales of $9,464,000, catalog sales of $869,000, online sales, net of promotional discounts, of $226,000 and shipping and handling revenues of $161,000, for the prior year period. Same store sales, or sales for stores open at least 14 months, decreased 2.5 per cent from the prior period.
For the second quarter, the company's consolidated earnings, before interest, taxes, depreciation and amortization, and before new store pre-opening costs, nonrecurring charges, and after minority interest (EBITDA), consisted of a loss of $1,735,000, compared to a loss of $220,000 for the second quarter last year. On an unconsolidated basis for the second quarter, EBITDA was a loss of $113,000 for The Right Start, Inc and a loss of $1,622,000 for Rightstart.com.
Jerry R. Welch, chairman and CEO, said, "We expect our consolidated results to significantly improve over the balance of our fiscal year. With respect to RightStart.com, we have greatly reduced our marketing expenditures and made certain adjustments in our customer service policies which we believe will allow us to be profitable in this year's fourth quarter in our online business.
"Further, we expect our same store sales trend to turn positive over the second half of the year and plan to open approximately ten to twelve new `street' stores by year end. The combination of positive same store sales, continued maturation of the 27 street stores opened over the past 2 1/2 years, and the addition of the new stores mentioned above should allow us to be profitable in our stores group in the fourth quarter."
About Right Start
The Right Start, Inc is a US specialty retailer of high quality developmental, educational and care products for infants and children through age 3. The Right Start brand originated in 1985 through the creation of the award-winning Right Start Catalog. The Right Start now operates 53 retail stores nationwide.
RightStart.com is an online specialty retailer for infants and children through age 12 and has recently expanded to include a learning Store on its site for parents and educators.
Rightstart.com provides a number of services aimed at bringing the specialty retail experience of The Right Start's retail stores to its online customers, including free shipping and handling on orders over $49, deluxe gift wrapping, guaranteed same-day shipping and the ability to return items bought online to retail stores nationwide and live online help. The companies are based in Westlake Village, California.
- Fashion fit for the future – strategies for speed
- How PVH is paving the way for connected apparel
- Digitisation to drive new apparel-making models
- Under Armour Lighthouse will disrupt production
- Will new Vietnam wage hinder competitiveness?
- US Q3 in brief - Rocky Brands, Gymboree Corp
- Child refugees found in Turkey apparel factories
- Chinese manufacturer invests $20m in US facility
- Managing change in the move to new tech tools
- Apparel brands "ignoring" refugee abuse in Turkey
- Africa-Med strategic sourcing review – comparing East Africa, North Africa and Turkey
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Apparel (GLOBAL) - Industry Report
- Global Sports and Fitness Wear Market 2016-2020