The Bombay Company, Inc. Announces January, Fourth Quarter and Fiscal Year Results

Furniture World Magazine

The Bombay Company, Inc. (NYSE:BBA) reported today that total revenue for the four-week period ended January 28, 2006 increased 1.4% to $38.6 million compared to $38.1 million for the four-week period ended January 29, 2005. Same store sales for stores opened more than 12 months increased 6.0% compared to the comparable four-week period of the prior year. Revenue from non-store activity declined to 5.1% of total revenue for the month compared to 9.6% during the same period last year. Lower revenue from the Bailey Street operations, the assets of which were sold during Fiscal 2005, accounted for approximately $1.2 million of the decline. For the fourth quarter, total revenue declined 6.9% to $189.3 million compared to $203.4 for the comparable prior year period while same store sales decreased 4.3%. Revenue from non-stores activity was 5.1% of total revenue for the fourth quarter of Fiscal 2005 compared to 7.1% in the corresponding period of Fiscal 2004. Lower revenue from the Bailey Street operations accounted for approximately $3.5 million of the overall decline during the quarter. For the fiscal year, total revenue decreased 1.5% to $567.5 million from $576.1 million for the prior fiscal year and same store sales decreased 1.8%. Revenue from non-stores activity was 4.8% of total revenue for Fiscal 2005 compared to 8.1% in Fiscal 2004. Lower revenue from Bailey Street accounted for approximately $8.2 million of the overall decline for the fiscal year. James D. Carreker, Chairman and Chief Executive Officer noted, "We were pleased with January's sales results and the effectiveness of our inventory clearance activities. We believe that we have addressed the majority of the inventory issues created by a softer than expected holiday selling season, although gross margins may have been affected more than planned. Our inventory management efforts were effective in lowering inventory levels to the $128 to $132 million range, which allowed us to end the year with appropriate levels of inventory and open-to-buy capacity. We have managed our balance sheet well ending the year with no seasonal borrowings or long-term debt." The Bombay Company, Inc. designs, sources and markets a unique line of home accessories, wall decor and furniture through 498 retail outlets, specialty catalogs and the Internet in the U.S. and internationally.