Rising Expenses Cut Brookstone Fourth-Quarter Net 22 Percent
March 31, 2011,
MERRIMACK, N.H.-Increased costs offset a healthy net sales gain to reduce Brookstone's fourth-quarter net income 22 percent, to $42.8 million.
Selling, general and administrative expenses for the quarter, which ended on Jan. 1, increased by 11 percent in dollars and 32 basis points as a percentage of sales, to 23.2 percent. In addition, gross margin fell 265 basis points to 42.5 percent.
For the fiscal year as a whole, Brookstone posted a net loss of $19.6 million, compared to a net loss of $7.8 million in the prior fiscal year. Net sales gained 8.8 percent to finish the year at $468.2 million.