Sunglass Hut International, Inc. announced its results for the fourth quarter and fiscal year ended 29 January 2000. Sales for the fourth quarter increased 8.5% to US$ 151.1 million from US$ 139.3 mil…
Sunglass Hut International, Inc. announced its results for the fourth quarter and fiscal year ended 29 January 2000. Sales for the fourth quarter increased 8.5% to US$ 151.1 million from US$ 139.3 million for the comparable period in fiscal 1998. Comparable store sales for the fourth quarter increased 7.4%. Net income from continuing operations for the quarter was US$ 2.5 million or US$ 0.05 per share, a 67% increase over net income of US$ 1.3 million or US$ 0.03 per share in the fourth quarter of 1998. Sales for fiscal 1999 increased 5.6% to US$ 635.6 million compared to US$ 602.0 million for the comparable period in 1998. Comparable store sales for fiscal 1999 increased 6.8%. For the fiscal year, net income from continuing operations increased 53% to US$ 27.5 million or US$ 0.58 per share compared to net income of US$ 19.8 million or US$ 0.38 per share in fiscal 1998. This represents the second consecutive year of significantly improved profitability. Reported net income for the fourth quarter and fiscal year ended 29 January 2000 include a charge of US$ 738,000, net of taxes, or US$ 0.01 per share to reflect additional disposal costs associated with the discontinuation of the Company“s EyeX optical segment. Net income inclusive of these charges were US$ 0.04 per share and US$ 0.57 per share for the fourth quarter and fiscal year ended 29 January 2000, respectively. “1999 was a year of sound financial performance marked by strong store growth,” said John X. Watson, president and CEO. “Through both gross margin and expense improvement, we were able to translate these sales into record earnings for the company, with earnings per share from continuing operations increasing 53% over 1998.” Watson said the company“s financial success was realized in part, as the result of a number of strategic initiatives. Specifically, the firm completed its store-restructuring programme, which included the closing of approximately 500 underperforming stores since 1997. The company then introduced, tested and rolled out its combo store concept. Currently, Sunglass Hut has over 200 combo stores in operation and is committed to expanding and/or converting 250 stores each year. “Furthermore, we turned around our international operations, as reflected by strong comp store growth and significantly improved results of operations in both Australia and Europe. In addition, we commenced our e-commerce efforts through the re-launch of our flagship website, www.sunglasshut.com and the development of Shades.com and SwissArmyDepot.com.” Sunglass Hut also announced that its Board of Directors approved the extension of its common stock repurchase programme to acquire an additional 8 million shares. The current plan allows for 15.5 million shares to be repurchased, of which 12.8 million shares have been repurchased at a cost of US$ 95.1 million since the inception of the programme in March 1998. During the fourth quarter of fiscal 1999 the company continued to exercise its Board approved authority to repurchase shares of stock in the open market repurchasing 3.3 million shares at a cost of US$ 32.3 million. Mr. Watson concluded, “Looking ahead, we will continue to execute the merchandising, marketing and combo store conversion strategies which have contributed to our accomplishments over the past year. We believe we have created a solid platform on which to further expand our business and are well-positioned to capitalize on future growth opportunities.” During the fourth quarter, the firm opened a total of 17 new units, including 14 combo format locations and converted 27 existing Sunglass Hut stores into the combo format. In addition, 71 marginal or unprofitable locations were closed during the quarter. Sunglass Hut International is recognized as a leader in speciality niche retailing with 1,888 locations including 1,574 Sunglass Hut locations, 111 Watch Station stores and 203 combination sunglass and watch stores around the world as of 26 February 2000. Located in a wide variety of high traffic shopping and tourist destinations, Sunglass Hut and Watch Station stores offer consumers the latest branded products at competitive prices along with outstanding customer service. Sunglass Hut stores are located throughout the United States, Canada, the Caribbean, Europe, Australia, New Zealand and Singapore.