Brookstone Q4 Net Falls 29.2%; Loss Widens for Fiscal Year

MERRIMACK, N.H.-In what the company described as a disappointing end to its fiscal year, Brookstone's fourth-quarter net income dropped 29.2 percent to $27.8 million. For its fiscal year ending on Dec. 29, the retailer/product-development company's net loss increased from $7.3 million to $13.7 million.

The quarterly results stemmed from a decrease of 8 percent in net sales, which totaled $232.8 million. Most of the decline occurred in Brookstone's retail channel, whose sales fell back 8.7 percent, including a 6.3 percent drop in same-store sales. Sales in its e-commerce channel were down 2.1 percent, while sales in its alternative distribution channel (which encompasses its wholesale business) rose 24.3 percent.

The overall sales decrease was a factor in Brookstone's 284 basis-point plummet in gross margin, which finished the quarter at 37.4 percent. Selling, general and administrative expenses fell 4.5 percent but increased 84 basis points as a percentage of sales, to 23.1 percent.

For the fiscal year, net sales rose 4.6 percent to $519.6 million. Retail-channel sales slipped 0.1 percent, including an increase of 1.7 percent in same-store sales. Sales in Brookstone's e-commerce channel were up 9.3 percent, and sales in the alternative-distribution channel jumped 51.4 percent.

Despite the weak end to the fiscal year, Stephen Bebis, Brookstone's president and CEO, cited the growth in the e-commerce and alternative-distribution businesses as positives for the company. Bebis added that Brookstone has launched a plan "to significantly reduce certain administrative and labor costs....These measures are designed to increase the profitability of the company, while at the same time provide for growth of our strategic initiatives."

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.


  • Patti Carpenter Talks Color and its Importance in the Home

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN August 2017 cover


    August 2017

    COVER STORY: Sharpening the Focus on Millennials

    Find out what makes Millennials tick when it comes to home decorating, shopping and at-home entertaining with HFN's annual consumer study. Turns out, Millennials favor the in-store shopping experience.


    • Power of the People - Crowdfunding campaigns provide needed capital, feedback for home and housewares product launches.
    •  Omnichannel Retailing: Visual Search Takes Off - Learn how voice and visual search are revolutionizing product discovery.