Brookstone Cuts Loss in 3Q
MERRIMACK, N.H.-Brookstone slimmed its third-quarter net loss to $12.2 million from $13.8 million in the third quarter of last year, thanks to significant sales gains from all three of its distribution channels.
Net sales for the quarter, which ended on Sept. 29, totaled $95.3 million, an improvement of 21.9 percent over last year's third quarter. This gain included an increase of 6.1 percent in Brookstone's retail channel, which itself included a same-store sales pickup of 6.1 percent. The company's e-commerce channel produced a 33 percent increase in sales, while sales in the alternative-distribution channel (which encompasses Brookstone's wholesale business) rose a dramatic 177.4 percent.
Overall gross margin for the company added on 23 basis points to 23.3 percent. Selling, general and administrative expenses, while rising 10.6 percent in dollars, decreased 319 basis points as a percentage of sales to 31.2 percent.
Saying that Brookstone is "encouraged" by its top- and bottom-line results in the quarter, Stephen Bebis, president and CEO, added, "We continue to invest in strategic growth initiatives to drive our long-term success in each of our business segments, and have realized particularly strong gains in our audio and mobile technology product categories."