Trans World's Comps Drop 5%

ALBANY, NY-Trans World Entertainment, the parent company of mall-based f.y.e. and other music store chains, posted a same-store sales drop of 5% year-over-year during its Q2, which ended July 30. The retailer also reported a net loss of $7 million.

“The first six months [of 2005] have been difficult for the industry and our company,” said Robert Higgins, the company’s chairman and CEO, during a conference call. “We look forward to the second half of the year.”

Higgins blamed the results on a slowdown in the sales of music, videos and video games. The company has experienced similar droughts and will bounce back, he stressed.

Trans World’s Q2 sales fell to $253.1 million from $277.2 million during the same year-ago period. Over the last six months, sales dropped to $538.5 million from $581.7 million during the first half of last year.

During the quarter, Trans World opened one store, relocated seven and closed eight. The retailer’s executives plan to open 35 new units this year and reposition 25. Trans World currently operates 797 units, mostly under the f.y.e. banner. Its other chains are Coconuts Music and Movies, Strawberries Music, Wherehouse, CD World, Spec’s, Second Spin and Planet Music.