Today's word out of Bombay
Bombay reported fourth-quarter earnings down 42% to $7.1 million, or $0.20 per diluted share, compared to last year's $12.3 million, or $0.34 per diluted share. Sales fell 4% to $203.4 million, while same-store sales for the quarter decreased by 7%. Gross margins declined to 28.7% from 31.8%.
For the year, Bombay reported a loss of $0.36 per diluted share. It forecasts earnings of $0.02 to $0.08 per share for fiscal 2005, with same-store sales in the low- to mid-single-digit range. Not surprisingly, it anticipates that most of the same-store sales improvement will occur during the back end of the year.
On a more upbeat note, the company ended the year with no debt and $9.2 million in cash. Of course, while it's nice to know that the company does have cash in the coffers, it's a far cry from the $25.6 million in cash and short-term investments it had this time last year.
Again, this is not a surprise given recent performance from companies like Bombay and Pier 1
Investors bid down shares of Bombay today, and it's not surprising. Not long ago, Rick Munarriz suggested waiting on the sidelines with some of these furniture stocks; as cheap as some may appear after a protracted period of tough times, a turnaround may be less than imminent.
Take a seat and read the following recent Foolish content for more on this industry:
Alyce Lomax does not own shares of any of the companies mentioned.