Brookstone Slims Loss in Third Quarter
MERRIMACK, N.H.--Rising sales and reduced expenses helped Brookstone narrow its third-quarter net loss to $13.8 million from $20.5 million in last year's third quarter.
Net sales in the quarter, which ended on Oct. 1, increased 7.6 percent to $78.2 million, including an increase in same-store sales of 4.7 percent. Ron Boire, Brookstone's president and CEO, said both the retail and direct segments showed improvement in the quarter. "The third quarter of 2011 marks our eighth consecutive quarter of same-store sales increases in the retail segment, and the eighth consecutive quarter the direct segment has generated increased sales over the comparable quarter of the previous year," Boire said.
Expenses, while still weighing down on Brookstone's financials, were lightened somewhat in the quarter. Selling, general and administrative expenses were trimmed by 3.5 percent in dollars and by 393 basis points as a percentage of sales, to 34.4 percent. Meanwhile, the sales increase helped boost gross margin by 424 basis points, to 23.1 percent.