BBA Bombay CO

FORT WORTH, Texas, Aug. 3 /PRNewswire-FirstCall/ -- The Bombay Company, Inc. (NYSE:BBA) reported that total revenue was $33.6 million for the four-week period ended July 30, 2005 compared to $34.6 million for the four-week period ended July 31, 2004, a 3% decline. Excluding amounts related to Bailey Street Trading Company ("Bailey Street"), revenue increased 1% to $33.6 million for the current year period from $33.2 million during the corresponding period of the prior year. Same store sales for stores opened more than one year declined 3%. Revenue from non-store activity, including Internet, Mail Order, Bailey Street and International, was 5% of total revenue for fiscal July 2005 compared to 10% for fiscal July 2004, a decline of $1.8 million of which $1.4 million related to the Bailey Street operations. For the second quarter, total revenue increased 4% to $128.0 million for the thirteen-week period ended July 30, 2005 compared to $122.5 million for the thirteen-week period ended July 31, 2004. Excluding Bailey Street, revenue increased 5% to $124.7 million from $118.9 million last year. Same store sales increased 1% for the quarter. Revenue from non-store activity was 4% for the period compared to 9% for the second quarter last year. For the twenty-six weeks ended July 30, 2005, total revenue increased 1% to $250.1 million from last year's $246.1 million while same store sales declined 2%. Excluding Bailey Street, revenue increased 2% to $243.2 million from $238.5 million last year. Revenue from non-store activity was 5% of total revenue for the period compared to 9% for the corresponding twenty-six week period of the prior year. James D. Carreker, Chairman and Chief Executive Officer stated, "After months of preparation, July saw the roll out of our new merchandising strategy which features lifestyle-based, in-store displays. From a merchandise standpoint, this fall's introductions focus on simplified designs for our furniture, accessories, lighting and textiles. We have made great strides in raising quality standards throughout all departments. We have edited our assortment, which will allow for new businesses, permanent and seasonal, such as the Halloween assortment that will debut later this month. The new lifestyle presentation showcases the merchandise in a manner that we expect will inspire our customers with decorating ideas and help them to visualize our merchandise in their homes. "Notwithstanding the excitement of the new look, we significantly underestimated the impact of two key aspects of the second quarter. First, we underestimated the sales and margin impact of the transition. Margin drains from clearance merchandise and the sale of floor models were significantly higher than was previously planned. Second, our direct business was much softer than anticipated. We have taken actions to reinvigorate this channel that should begin to impact the third quarter. "We are encouraged by the response to our new look and assortment. Same store sales were positive during the last two weeks of the month. Although it may take some time for our customers to fully appreciate our investment in the presentation and merchandise, we believe that both are much improved compared to the prior years and should generate improving sales and gross margin rates as the fall season progresses. We remain cautiously optimistic about the second half of the year," concluded Mr. Carreker. The Company expects to review the second quarter results as well as the outlook for the remainder of Fiscal 2005 on Thursday, August 18, 2005 at 10:00 a.m. Central Time. Interested parties should dial 212-676-5380 ten minutes prior to the start time. The call will also be broadcast live over the Internet at http://www.bombaycompany.com/ . The Bombay Company, Inc. designs, sources and markets a unique line of home accessories, wall decor and furniture through 495 retail outlets, specialty catalogs and the Internet in the U.S. and internationally. Any statements in this press release that may be considered forward- looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Those risks are described in the Company's public announcements, reports to stockholders and SEC filings, including but not limited to Reports on Forms 10-K, 8-K and 10-Q, copies of which are available from the SEC or may be obtained upon request from the Company. The Company undertakes no obligation to revise the forward-looking statements contained therein to reflect events or circumstances after the date hereof as a result of new information, future events or otherwise. DATASOURCE: The Bombay Company, Inc. CONTACT: Elaine D. Crowley, Sr. Vice President, Chief Financial Officer of The Bombay Company, Inc., +1-817-347-8200 Web site: http://www.bombaycompany.com/

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