The Straits Times / The Business Times News on OSIM

Brookstone posts Q3 net loss but stays upbeat for full year

BROOKSTONE Inc, whose acquisition by an OSIM-led consortium was completed on Oct 4, has reported a net loss for its third quarter ended Oct 29.

The US specialty store posted a net loss from continuing operations of US$11.7 million, up from US$6 million in the previous corresponding period.

After discontinued operations, net loss came to US$13.4 million, up from US$6.7 million.

Third-quarter net sales came to US$76.7 million, a fall of 7.3 per cent.

Year-to-date net loss from continuing operations totalled US$20.4 million, up from US$9.9 million. After discontinued operations, year-to-date net loss came to US$25.9 million, up from US$11.8 million.

The higher year-to-date loss came despite fairly steady turnover. For the 39 weeks ended Oct 29, Brookstone saw net sales of US$241 million, down 3.9 per cent.

Brookstone said that because of the seasonal nature of specialty retailing, it usually suffers a loss over the first three quarters and then makes its profit for the year in the fourth quarter.

'In the first nine months of this year, we introduced a number of new innovative products, but these were not enough to offset some significant declines in a number of categories that performed extremely well for us last year,' said Brookstone chief executive Michael Anthony.

Healthcare and lifestyle products group OSIM International led a consortium, which included Temasek Capital and US-based private equity firm JWChilds, earlier this year to acquire Brookstone for some US$450 million.

OSIM said in a statement that it is optimistic about Brookstone's prospects for the fourth quarter.