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Design Within Reach Studio sales down 10.2% in Q3
10 Nov '08
4 min read
Nine Month Results:
-- Net sales for the nine months ended September 27, 2008 decreased 3.8% to $136.5 million from $141.9 million in the same period last year. Net loss for the nine months ended September 27, 2008 was $6.4 million, compared to a net loss of $1.9 million in the same period last year. No income tax benefit was recorded in the nine months ended September 27, 2008 because recent adverse changes in the economy and decline in demand for our products have indicated that, more likely than not, the tax benefit of the year-to-date pre-tax loss would not be realized during fiscal year 2008. An income tax benefit of $0.1 million was recorded in the nine months ended September 29, 2007.
As of September 27, 2008, Design Within Reach had approximately $16.6 million in working capital resources, including approximately $5.1 million in cash and cash equivalents and approximately $11.5 million available for advances under its revolving credit facility. The Company has invested approximately $4.5 million in capital expenditures in the first nine months of 2008, and expects to invest approximately $3.0 million during the remainder of the year for information technology, DWR:Tools for Living stores and select studio remodels.
Guidance
Given the unprecedented macro-economic environment and the difficulty in forecasting future trends, the Company is withdrawing its previously-issued sales and earnings guidance for fiscal 2008. The Company is focused primarily on cash flow and remains committed to taking the necessary steps, including reducing expenses and managing inventory, to maintain liquidity and position the Company to achieve improved results when consumer spending increases.
Design Within Reach Inc, founded in 1998 and headquartered in San Francisco, California, is an integrated multi-channel provider of distinctive modern design furnishings and accessories.
-- Net sales for the nine months ended September 27, 2008 decreased 3.8% to $136.5 million from $141.9 million in the same period last year. Net loss for the nine months ended September 27, 2008 was $6.4 million, compared to a net loss of $1.9 million in the same period last year. No income tax benefit was recorded in the nine months ended September 27, 2008 because recent adverse changes in the economy and decline in demand for our products have indicated that, more likely than not, the tax benefit of the year-to-date pre-tax loss would not be realized during fiscal year 2008. An income tax benefit of $0.1 million was recorded in the nine months ended September 29, 2007.
As of September 27, 2008, Design Within Reach had approximately $16.6 million in working capital resources, including approximately $5.1 million in cash and cash equivalents and approximately $11.5 million available for advances under its revolving credit facility. The Company has invested approximately $4.5 million in capital expenditures in the first nine months of 2008, and expects to invest approximately $3.0 million during the remainder of the year for information technology, DWR:Tools for Living stores and select studio remodels.
Guidance
Given the unprecedented macro-economic environment and the difficulty in forecasting future trends, the Company is withdrawing its previously-issued sales and earnings guidance for fiscal 2008. The Company is focused primarily on cash flow and remains committed to taking the necessary steps, including reducing expenses and managing inventory, to maintain liquidity and position the Company to achieve improved results when consumer spending increases.
Design Within Reach Inc, founded in 1998 and headquartered in San Francisco, California, is an integrated multi-channel provider of distinctive modern design furnishings and accessories.
Design Within Reach Inc
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