Brookstone Net Falls 7.7 Percent in Fourth Quarter
MERRIMACK, N.H.-Brookstone rounded out its fiscal year with a 7.7 percent decline in fourth-quarter net income, to $39.3 million. For the fiscal year as a whole, which ended on Dec. 31, the lifestyle retailer narrowed its net loss from $20.5 million to $7.3 million.
Jim Speltz, chief operating officer, said Brookstone was able to make improvements in its business during the year, including an expansion of the product assortment in its e-commerce segment, enhanced product assortment and selling efforts in its stores, and increased sales to its wholesale and corporate customers. As a whole, net sales rose 1.4 percent to $253 million in the quarter, with a 3.1 percent pickup in same-store sales. For the year, net sales rose 6.1 percent to $496.8 million, including a same-store sales increase of 2.5 percent.
Gross margin in the quarter dropped 231 basis points to 40.2 percent. Selling, general and administrative expenses declined 2.4 percent in dollars and 88 basis points as a percentage of sales, to 22.3 percent.