Bombay Posts Wider 2Q Loss
FORT WORTH, Texas (AP) - Home furnishings retailer Bombay Co. reported Wednesday its fiscal second-quarter loss more than doubled from the year-ago period, which benefited from a gain on the sales of a business. It also said it would cut an undisclosed number of jobs and implement other moves to save $31 million a year.
For the quarter ended July 29, the company reported a loss of $19.9 million, or 55 cents per share, versus a prior-year loss of $9.4 million, or 26 cents per share. The year-ago results included $3.3 million of revenue from Bombay's Bailey Street operations, which it sold in fiscal 2005.
Revenue declined to $121.3 million from $128 million in the year earlier quarter.
Wall Street had forecast a loss of 32 cents per share, the mean estimate of five analysts surveyed by Thomson Financial, on projected sales of $124.7 million.
Sales in stores open at least one year -- a closely watched performance gauge called same-store sales -- declined 3 percent.
Bombay said it would eliminate three senior management posts that reported to Chief Executive David B. Stewart, in addition to other job cuts. It also said it would revamp its marketing, eliminate unproductive print advertising, and reduce discounting in its stores. The moves are intended to return the retailer to positive cash flow, it said.
Bank debt at the end of July totaled $28.3 million, compared with $55.5 million in the year-ago period. Bombay said it was in talks to increase the size of its credit facility for the current quarter, a move that would include its borrowing against the value of its corporate headquarters building.