Trans World Posts Continued Quarterly Declines

Trans World Entertainment posted continued losses during the recent, second quarter, according to figures released Thursday.

Losses for the period topped $10.1 million, or 32 cents per diluted share, on decreased revenues of $267.3 million.  That is far broader than year-ago quarterly losses of 7.7 million, or $0.25 per share, though analysts expected a slightly deeper drop.  Revenues dipped roughly 10 percent from figures of $298.3 during the comparable quarter last year.

The drops are largely being prompted by two factors.  The total number of stores decreased 12 percent to 953 outlets, though the more important metric involves comparable store sales.  For the quarter, same-store revenues decreased 6 percent.

For the first half of the year, losses also widened.  Trans World reported net losses of $19.1 million, or $0.62 per share, a substantial drop compared net losses of $14.8 million, or $0.48 per share, for the first half of last year.  The slide comes amidst a steady diversification program, and the company reported gains across DVDs, video games, and consumer electronics, though CDs drove the broader declines.  Comparable store, music-related purchases dropped 19 percent during the period.

Story by news analyst Alexandra Osorio.