Wednesday August 14th, 2013 - 9:59AM
Brookstone, Inc. today reported a second quarter net sales decline of 11.8% to $90.3 million and comp store sales decline of 8.5% versus the comparable year-earlier period. The company also reported adjusted EBITDA declined to ($6.9) million compared to ($2.5) million for the second quarter ended June 30, 2012. For the first half of the year the company reported that consolidated net sales decreased 6% to $180 million and Adjusted EBITDA declined to ($14.7) million compared to ($11.5) million for the twenty-six week period ended June 30, 2012.
The company also announced that it has entered into an amended banking facility with Wells Fargo Capital Finance, part of Wells Fargo & Company, which will provide up to $25 million of additional availability as the company looks forward to the fourth quarter holiday selling season. This new facility includes an expansion of Brookstone's current line of credit by $10 million to $110 million, and additional short term funds of up to $15 million.
"We are pleased to have been able to complete this important financing for Brookstone which will allow them the financial flexibility to make strategic business decisions," said James Dore, president of the commercial and retail finance group at Wells Fargo Capital Finance. "The senior management team has been incredible to work with and we look forward to supporting this specialty retailer."
For the second quarter Brookstone’s net sales in the e-commerce channel increased $0.7 million, or 4.3%, to $17.6 million, as compared to the same period of 2012. For the twenty-six week period ended June 29, 2013, net sales in the e-commerce channel increased $2.7 million, or 8.3%, to $35.2 million, compared with the comparable year-earlier period. The company attributed the increases to additional revenue resulting from a larger selection of quality third party products on the company's website and expansion of successful Internet marketing programs.