MERRIMACK, N.H.–Fourth quarter net income for Brookstone fell 68.2 percent to $20.8 million.
The retailer’s bottom line for the quarter, as reported in a company statement, excluded non-cash impairment charges and charges related to intangible assets and underperforming stores. With these charges, Brookstone posted a loss from continuing operations of $98.2 million for the quarter. Sales for the period were $220.1 million, off 23.7 percent from sales in the final quarter of 2007; and same-store sales fell 25.5 percent.
In the statement, Lou Mancini, Brookstone’s chief executive officer, said the fourth-quarter downturn began with a “significant” sales dropoff in October. The company responded with actions to reduce inventory and costs, including markdowns in prices. The latter move reduced the company’s profitability and gross margin, Mancini said.
For the full fiscal year, Brookstone recorded a net loss of $10.4 million, compared to net income of $40.8 million for the prior year. Sales finished at $496.7 million, down 11.7 percent from the previous year.