4 June 1998: US-based Sunglass Hut International, Inc. recently announced its results for the first quarter of fiscal 1998 ended 2 May 1998. Sales for the first quarter increased 7.6% to US$ 146.6 mil…
4 June 1998: US-based Sunglass Hut International, Inc. recently announced its results for the first quarter of fiscal 1998 ended 2 May 1998. Sales for the first quarter increased 7.6% to US$ 146.6 million from US$ 136.2 million for the comparable period in fiscal 1997. Comparable store sales for the first quarter increased 3.8%. Net income for the quarter was US$ 3.8 million or US$ 0.07 per share, compared to net income of US$ 292,000 or US$ 0.01 per share during the first quarter of 1997. “The positive results we achieved in the first quarter resulted from a combination of improving sales trends, a return to normalized gross margin, well controlled inventories, and tight expense controls,” said John X. Watson, President and Chief Executive Officer. During the first quarter, the company opened a total of 25 sunglass specialty locations and 10 new Watch Station locations, including two combination Sunglass Hut/Watch Station locations in the Perimeter Mall in Atlanta, Georgia and on Clematis Street in West Palm Beach, Florida for a total of 35 new units. In accordance with plans to eliminate approximately 250 marginal or unprofitable sites through closure in 1998, the company closed 44 under-performing locations during the quarter. Additionally, Sunglass Hut has announced plans to cease operations of its EyeX optical segment. Sunglass Hut International is the world“s largest specialty retailer of sunglasses, with stores located throughout the United States, Canada, the Caribbean, Europe, Australia, New Zealand and Southeast Asia. As of 2 May 1998, Sunglass Hut International operated 2,070 sunglass specialty locations and 87 Watch Station stores.