Brookstone Hits Record Sales

"We end 2004 and begin 2005 in a strong financial position," Brookstone Chairman, President and Chief Executive Officer Michael Anthony told investors in a conference call yesterday. Anthony said the company's record performance was due to customer demand for Brookstone-branded products, which generated 70% of the company's sales, in addition to strong revenue growth in all of the firm's sales channels.

For the fiscal year ending Jan. 29, 2005, the New Hampshire-based company's total sales increased $14.9 million to $499 million, compared to $434 million in 2003. Same-store sales also rose 6.3% while the firm's direct marketing profit increased 73.5% to $11 million. The firm said it earned a record profit of $21.4 million in 2004 , or $1.02 per diluted share.

But not all Brookstone products fared well during 2004, the company said. Sales of its low-end massage chairs lagged and audio sales declined, due largely to the popularity of Apple's Ipod music device, which grabbed a large share of that market. The company also said it's line of Gardener's Eden stores are not operating at the expected level.

Yet despite those setbacks, the firm said it is poised for another year of strong performance this year. The company, which opened 18 new Brookstone stores in 2004, plans to put another 20 on line this year and is forecasting same-store sales growth of 2% to 3%. The firm also expects to increase the productivity of its catalogue and internet business.