Brookstone Loss Rises in Third Quarter
MERRIMACK, N.H.--Brookstone registered a third-quarter net loss of $20.3 million, compared to a $19 million net loss in the third quarter of last year.
The retailer's redder bottom line emerged in spite of a net sales increase of 6.6 percent to $72.7 million, which included a gain of 6.2 percent in same store sales. Selling, general and administrative expenses finished the quarter 9.3 percent higher than they were in the 2009 third quarter, and also added 100 basis points as a percentage of sales, to 38.3 percent. Gross margin in the quarter increased 54 basis points to 18.9 percent.
In spite of the poor profit performance, Ron Boire, Brookstone's president and chief executive officer, said he was "encouraged" by the sales increase. "This quarter marks our fourth consecutive quarter of same-store sales increases," Boire said. "We believe this progress...finds Brookstone well positioned for the fourth quarter and beyond."