US-based Sunglass Hut International, Inc. has announced its results for the third quarter of fiscal 1999 ended 30 October 1999.
Sales for the third quarter increased 7.7% to US$ 132.3 million from U…
US-based Sunglass Hut International, Inc. has announced its results for the third quarter of fiscal 1999 ended 30 October 1999. Sales for the third quarter increased 7.7% to US$ 132.3 million from US$ 122.8 million for the comparable period in fiscal 1998. Comparable store sales for the third quarter increased 8.1%. Net loss for the quarter was US$ 1.6 million, or US$ 0.03 per share, compared to a net loss of US$ 4.0 million, or US$ 0.08 per share during the same period last year, an improvement of 63%. Year-to-date sales increased 4.7% to US$ 484.5 million from US$ 462.6 million in the comparable period in fiscal 1998. Year-to-date comparable store sales increased 6.6%. For the nine months ended 30 October 1999 earnings were US$ 25.0 million, or US$ 0.52 per share, an increase of 53% compared to earnings of US$ 18.5 million, or US$ 0.34 during the same period last year. “Our third quarter results were driven by effective merchandising and marketing programs which led to strong sales increases across all business units,” said John X. Watson, president and CEO. “We are very pleased with our continued strong improvement in operating earnings, which was marked by a 3.8 percentage point improvement in EBITDA margin. Improvement in operating profitability resulted from an 8.1% comparable store increase, improved gross profit margins and lower expenses as a percentage of sales. Looking ahead, our goal during the fourth quarter is to continue to build upon the momentum we have generated throughout the year.” During the third quarter, the company opened a total of 31 new units, including 15 combo format locations, and converted 40 existing Sunglass Hut stores into the combo format. Sunglass Hut said it expects to operate up to 200 combo stores by the end of the year, with an additional 250 new or converted stores targeted for 2000. In addition, 59 marginal or unprofitable locations were closed during the quarter, including 34 licensed departments operating in Eaton“s Department stores located in Canada. During the third quarter, the firm also continued to exercise its Board approved authority to repurchase shares of stock in the open market. Since the end of the second quarter, the Company has repurchased 1 million shares at a cost of US$ 10.9 million.