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There’s an wonderful chicken and waffles restaurant in Phoenix that features a sign on the wall which (more-or-less) reads “If we don’t meet your expectations, please lower your expectations.” It might be a good idea for a similar sign to be placed in the office of everyone who makes economic forecasts for a music retailer in America, what with both Barnes and Noble and Trans World Entertainment releasing their sales information for the holiday season.
One has to wonder who is setting these expectations in the first place, and if they should consider medication for their delusions, but it’s a little late now.
Trans World Entertainment Corporation (Nasdaq: TWMC) today reported a comparable store sales decrease of 12% for the nine-week period ended January 5, 2008. For the five-week period ended January 5, 2008, comparable store sales decreased 13%. Total sales for the nine-week period were $378 million compared to $469 million for the same period last year, a decrease of 19%. Total sales for the five-week period decreased 24% to $264 million compared to $348 million for the same period last year. The Company operated 14% fewer stores, on average, during the nine-week period as compared to last year.
“Sales for the holiday season were well below our expectations,” commented Robert J. Higgins, Chairman and Chief Executive Officer of Trans World Entertainment. “As a result, we expect to report a net loss for
fiscal 2007 in a range of $15 to $20 million.”For the eleven-month period ended January 5, 2008, comparable store sales decreased 9%. Total sales for the period decreased 12% to $1.192 billion compared to $1.353 billion during the same period last year.
At very least, Barnes & Noble had the Harry Potter book to prop up “disappointing music sales”; what did FYE have to offer? An excellent selection of High School Musical 2 posters? The question isn’t really how Trans World will react, but possibly whether next Christmas you’ll be able to purchase list price discs from one of the company’s retailers at all.
Trans World Entertainment Reports a 12% Decline in Comparable Store Sales for the 2007 Holiday Season [PR Newswire]
Music Sales Weak at Barnes & Noble [Wall Street Journal]
The end is nigh.
@dennisobell: I’ve been feeling that way also, lately.
Oh, you were talking about FYE still?
….a comparable store sales decrease of 12% for the nine-week period ended January 5, 2008…Total sales for the nine-week period were $378 million compared to $469 million for the same period last year, a decrease of 19%.
Does that mean that they sell online too and had a big(ger) drop in sales there? Or something else, like the twelve-percent decrease was per store and the nineteen percent drop is because a bunch of stores closed?
@DanGibson: FYE, Life As We Know It — what’s the difference, really?