August 29, 2019
Despite a 1-for-20 shares reverse stock split, shares of Trans World Entertainment plunged more than 30% Aug. 29 after the parent to home entertainment retailer f.y.e. (For Your Entertainment) reported dismal quarterly earnings.
Indeed, fye comparable store sales decreased 1.2%, compared to an increase of 9.6% during the previous-year period. Increases in lifestyle categories were offset by declines in electronics and packaged media movies, TV shows, music and video games. Comp revenue in the electronics category decreased 0.1%.
Video sales were down 16.1%, due to the underperformance of new releases impacted by soft theatrical releases.
“A headwind that will continue to influence this category in the second half of the year,” CFO Edwin Sapienza said on the fiscal call.
Lifestyle and electronics categories represented 58% of $76 million revenue for the second quarter as compared to 53% last year. Media category comp sales declined 12.8% for the quarter, and represented 42% of the f.y.e. segment sales compared to 47% last year. Music sales were down 7.8%.
“We continue to see strong sales of K-pop merchandise,” Sapienza said.
The company operated about 200 f.y.e stores in the period compared to 241 stores last year.