Trans World Entertainment Posts Lower Losses, Lower Sales
Trans World Entertainment's quarterly earnings show a slowing decline for the retailer, with losses standing at $3.05 million ($0.10 per diluted share), an improvement over the $5.1 million loss (or $0.16 per diluted share) over the corresponding period last year. However, sales decreased by 6.2 percent in the same period last year, from $71.9 million to $67.5 million.
The shrinking red ink was helped by a combination of an improved market for electronic and trend merchandise, as well as a $1.4 million reimbursement of label expenses related to a settlement.
"The quarter was highlighted by a comparable store sales increase of 30 percent in our emerging trend and electronics categories, which now represent nearly 30 percent of our sales mix in the quarter," Trans World CEO Mike Feurer said in a statement. "Our gross margin rate increased 130 basis points to historical highs, due to the shift in mix to the higher margin categories, as well as improved margins in our traditional categories, through improved inventory control and better price management.
For the quarter, the company’s gross profit ratio was 40.3 percent, up from 39 percent in the second quarter of 2014.
For the year to date, the company has lost $2.85 million, or 9 cents a share, on revenues of $87.5 million. That’s down from the $5.5 million, or 17 cents a share, it lost in the first half of 2014, when sales totaled $98.3 million. At mid-year, it had $91.4 million in cash, and 308 stores in operation.