Jennifer 2Q revenues dip 5.8%
By Furniture Today Staff -- Furniture Today, April 21, 2003
Woodbury, N.Y. — Specialty retailer Jennifer Convertibles posted a fiscal second-quarter loss of $821,000 and an 8.7% decrease in same-store sales.
Still, the loss in the quarter ended March 1 was an improvement over the $942,000 loss for the year-ago quarter. Revenue for the 203-store chain dropped 5.8% to $29.4 million from $31.2 million.
For the first half, the net loss was $318,000 compared to a net loss of $1.4 million a year ago. Total revenues for the six months increased 1.3% to $66.4 million, and same-store sales slipped 1.7%.
Results were affected by a change in the way Jennifer records fabric protection revenues. In last year's second quarter, $1.4 million of fabric protection revenue was deferred, and $3.2 million was deferred for last year's six months. No revenue was deferred in the current year, and Jennifer now recognizes fabric protection revenues upon delivery of goods.
"We believe that concerns over the economy, the equity markets and current world affairs have adversely affected retail sales and continue to adversely effect our business and operating results," said Harley Greenfield, chief executive officer.
He said the company's fundamentals remain strong and "we are poised to resume our profitable growth as the economy improves."
The company said operating margins increased to 31.4% during the quarter from 29.5% a year ago, and to 32.7% for the six months from 30.3%, due primarily to the revenue recognition change, the company said.
First-quarter selling, general and administrative expenses increased to 33.5% of revenue compared to 31.5% for the same period a year ago, and to 32.2% for the first half vs. 31.2%.
The company opened four stores in the quarter and seven in the first six months. Jennifer Convertibles owns and licenses 186 Jennifer Convertibles stores and 17 Jennifer Leather stores.
| Jennifer Convetibles | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 3/1 | 2003 | 2002 | Change |
| (a) Includes revenues from service contracts of $1.9 million in the 2003 quarter, $506,000 in the 2002 quarter, $4.3 million in the 2003 six months and $824,000 in the 2002 six months. (b) Includes income tax benefits of $184,000 in the 2003 quarter, $34,000 in the 2002 quarter and $90,000 in the 2003 six months. | |||
| Revenues (a) | $29,362,000 | $31,159,000 | (5.8%) |
| Operating income | (614,000) | (603,000) | — |
| Net income (b) | (821,000) | (942,000) | — |
| Earnings per share | (0.14) | (0.17) | — |
| 6 months ended 3/1 | 2003 | 2002 | Change |
| Revenues (a) | $66,437,000 | $65,595,000 | 1.3% |
| Operating income | 366,000 | (576,000) | — |
| Net income | (b)(318,000) | (1,365,000) | — |
| Earnings per share | (0.06) | (0.24) | — |
