West Marine 2nd-quarter profit tumbles

By Associated Press
July 24, 2008 | Comments (0)

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West Marine Inc. said Thursday it earned a much smaller second-quarter profit as hefty charges and a soft economy crimped the boating gear retailer's results.

Profit tumbled 79 percent to $4.4 million, or 20 cents per share, from $20.8 million, or 95 cents per share, a year earlier.

The latest quarter was hurt by a $14.6 million tax accounting charge which lowered profit by 66 cents per share. Also, cooperation with a Securities and Exchange Commission investigation cost the company a penny per share, and an asset impairment charge totaled 6 cents per share.

Excluding items, profit declined only slightly to $20.5 million, or 93 cents per share, from $20.8 million, or 95 cents per share, a year earlier.

Sales also slid to $226.7 million from $247.1 million, and same-store sales dropped 7.8 percent.

Chief Executive Geoff Eisenberg said results for the second quarter reflect ongoing softness in boating activity and the economy.

Shares rose 8 cents, or 2 percent, to $3.99 in afternoon trading.

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