Bombay expects steeper loss

FORT WORTH, Texas — The Bombay Company updated its first quarter earning guidance late yesterday, saying that it may post a greater loss than it had originally expected.

The company now expects a loss in the range of 13 cents to 16 cents per share. Previously, it had anticipated a loss at the high end of the range of 8 cents to 11 cents per share.

"As a result of the softness in sales, gross margins have been adversely impacted by costs associated with carrying higher inventory levels from last fall. Negative same store sales and the reduction of shipments to stores have created deleveraging effects in merchandise handling and freight costs, buying and occupancy costs and corporate and four-wall selling, general and administrative expenses," said James Carreker, chairman and CEO.

In a sign that headquarters reductions may be coming, he added that Bombay will recognize "unplanned senior officer severance expense" during the first quarter.

Bombay is now forecasting second quarter comps to be negative in the high single digit level vs. the prior projection of negative mid-single digit levels. Last year, same store sales were up 26 percent in second quarter vs. 25 percent for the first quarter.

Although the 465-unit company expects improvement following the first quarter, it also lowered its annual earnings per share guidance to a range of 30 cents to 35cents per share. It had previously expected earnings of 36 cents to 42 cents per share.

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Featured Video

  • Live From New York: Fashion Comes Across the Pond

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.


HTT Current issue for September 2017

See the September 2017 issue of Home & Textiles Today. In this issue, we look at the Attack of the Killer Third Tier: Monster off-pricers are climbing to the top of the food chain, plus New Products: 40 pages of new products debuting at the New York Home Fashions Market; Home Stores: TJX unveils first U.S. HomeSense store; Clicks to Bricks: Boll & Branch moves from digital to physical retailing; and much more... See details!