Groupe Bikini Village announces Q1 results
Groupe Bikini Village inc reported the results of its first quarter of 2011, reflecting slight decreases in sales and gross margins; effective control over direct and indirect expenses; and market-responsive, dynamic inventory management.
First quarter 2011 results
Net sales for the first quarter of 2011 were $9.9 million, a decrease of 1.4% from the $10 million posted in the first quarter of last year – while comparable sales, which compares the sales from the same number of stores year-over-year, increased by 0.5% over the same period.
Groupe Bikini Village delivered EBITDA of $83,000, or 0.8%, in the first quarter of 2011, compared to EBITDA1 of $148,000, or 1.5%, in the comparable quarter last year. The $65,000 decrease in operating margin in the first quarter of 2011 compared to the first quarter of 2010 is due to a $162,000 reduction in marginal contribution on sales, partially offset by a $97,000 reduction in operating expenses.
The reduced marginal contribution on sales was due to a slight decrease in sales volume as well as targeted promotional activities in April; the reduction in operating expenses was mostly related to reduced occupancy costs following the closure of underperforming stores, as we had planned in the retail networks optimization strategy we initiated four years ago.
Net loss for the for the three-month period ended April 30, 2011 was $353,000 (($0.18) per share, basic and diluted), as compared to net loss of $338,000 (($0.25) per share, basic and diluted) for the same quarter in the previous year.
All figures in this release, including including comparative data, are presented according to International Financial Reporting Standards ("IFRS").
"Groupe Bikini Village inc. worked diligently to preserve its solid positions in both inventory and cash in the first quarter (the latter made possible by improved performance and our successful rights offering and private placement in 2010), despite a difficult retail environment that necessitated targeted promotional activities in April," said Yves Simard, President and CEO of Groupe Bikini Village inc. "Despite challenging conditions in May and June, in the months and quarters to come, we will be well-positioned to further improve profitability by executing on our proven strategies, paying particular attention to performance at all levels of the Corporation, and increasing our business volumes."
"Moving into the second quarter and throughout 2011, we look forward to strengthening our competitive position – and thereby building shareholder value – by leveraging the strengths that have enabled us to improve our retail offering and deliver solid results in the past. We will continue to explore strategic opportunities that present themselves, and to create opportunities of our own, as well," he said.
Groupe Bikini Village inc