Rising Expenses Cut Brookstone Fourth-Quarter Net 22 Percent

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.

The sales picture for the quarter was much more rosy than the bottom line. Net sales totaled $249.4 million in the quarter, up 9.5 percent, and included a 6.7 percent increase in same-store sales. Ron Boire, Brookstone's CEO, said this marked the fifth consecutive quarter of comparable-store increases, and that the retailer is positioned "favorably" for the 2011 fiscal year.

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.

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.


Current Issue

  • HFN May digital issue


    May 2017

    COVER STORY: HFN Turns 90

    We commemorate HFN's 90th anniversary by paying tribute to the iconic retailer and supplier brands--and the people--that have helped the industry flourish, then and now.


    • Up & Coming Leaders - The home industry is in capable and visionary hands as this year’s 40 Under 40 list attests. Today’s young leaders span all disciplines and varied levels of operation.
    • Omnichannel Retailing - In the Mobile App World, Time is Money