Brookstone Net Loss Increases in Q2
Net sales were down 11.8 percent to $90.3 million in the quarter, which ended on June 29. The top line included a decrease of 8.5 percent in same-store sales. Brookstone said net sales in its retail channel fell 14.9 percent, while net sales in its alternative-distribution channel dropped 16.3 percent. Sales in its e-commerce channel were up 4.3 percent.
Gross margin decreased by 470 basis points to 22.7 percent. Selling, general and administrative expenses declined 16.4 percent in dollars and 179 basis points as a percentage of sales to 32.4 percent.
Brookstone also said it has entered into an amended banking facility with Wells Fargo Capital Finance, which will provide an additional availability of $25 million in time for the holiday selling season in the fourth quarter. "With our expanded Wells Fargo Bank credit facility in place, we expect to be able to refocus our product offerings for the all-important fourth quarter and take better advantage of future gifting periods," said Jim Speltz, president and CEO.