The company, which recently named new CEO Lou Mancini amid plans to rejuvenate the brand, reported net sales of $76.7 million, flat compared with the comparable period last year. "The results for the quarter as a whole were below our expectations," Mancini commented.
However, the new Brookstone CEO said, "Our results began to improve in March and have continued to improve into April." He said that the company has several important launches planned for the second quarter, including the launch of certain exclusive healthy lifestyle products that "we believe will contribute positively to the company's overall operations and financial performance."
The company ended the first quarter with approximately $38 million in cash and no cash borrowings under its asset-backed lending agreement. Brookstone, which was acquired in October last year, became a privately held, wholly owned subsidiary of OSIM Brookstone Holdings LP.
The company, which operates 303 Brookstone Brand stores nationwide and in Puerto Rico, typically locates in high-traffic regional shopping malls and airports. Philip Roizin, Brookstone's EVP for finance, noted in yesterday's conference call that the company has been introducing new merchandise and has implemented a number of other moves by which it hopes to "reverse the sales trends of 2005."
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