December 17, 2019
Home entertainment retailer f.y.e. (For Your Entertainment) Dec. 17 reported a third-quarter (ended Nov. 2) operating loss of $21.5 million, compared with an operating loss of $9.5 million for the same period a year ago.
Revenue decreased 14.7% to $40.8 million, compared with $47.9 million last year. Comparable store sales declined 5.2% compared with the same quarter last year, as a comparable store sales increase of 6.3% in the lifestyle category was offset by declines in the media categories, which includes packaged media.
The lifestyle category, which includes T-shirts, posters, action figures and related collectables, represented 46.2% of revenue compared to 41.9% for the same period last year.
Parent Trans World Entertainment attributed much of the loss to a $16 million impairment charge on long-lived assets. The company operated 206 stores in the quarter compared to 227 stores last year.
TWEC’s online aggregator eTailz.com narrowed its operating loss to $1.4 million versus a loss of $4.3 million last year. Revenue was $28.6 million, compared with $44.1 million last year.
The decline in revenue was due to the vendor rationalization and remediation initiative. Rationalization and remediation activities included terminating unprofitable vendors and improving vendor relationships through negotiations focused on improvements to gross margins and supply chain efficiencies.