BBA Bombay CO

FORT WORTH, Texas, Nov. 2 /PRNewswire-FirstCall/ -- The Bombay Company, Inc. (NYSE:BBA) reported that same store sales for stores opened more than one year increased 0.6% for the four-week period ended October 29, 2005. Total revenue declined 2.8% to $41.7 million compared to $42.9 million for the four-week period ended October 30, 2004. Revenue from non-store activities including Internet, Mail Order, International and Bailey Street were 5.1% of total revenue compared to 9.9% the prior year. Results for four weeks ended October 30, 2004 included $1.3 million of revenue from the Bailey Street operations, which were disposed of during the second quarter of Fiscal 2005. The remainder of the non-store decrease relates principally to the Internet and Mail Order businesses. For the quarter ended October 29, 2005, same store sales increased 2.7% while total revenue increased 1.0% to $127.9 compared to $126.7 million. Revenue from non-store activities was 4.8% of the third quarter of Fiscal 2005 compared to 10.6% for the prior year's quarter. For the year-to-date period, total same store sales declined 0.4% while total revenue increased 1.4% to $378.1 million from last year's $372.7 million. Revenue from non-store activities were 5.1% of the third quarter of Fiscal 2005 compared to 9.9% for the prior year's quarter. Declines in non-store activity for both the quarterly and year-to-date periods are primarily the result of disposing of the Bailey Street assets and softer sales in the Internet and Mail Order channels. James D. Carreker, Chairman and Chief Executive Officer stated, "During October, we saw continued strength in the wall decor category and increases in furniture sales. Improvements in these areas were partially offset by declines in decorative and functional accessory sales, as well as occasional tables due in part to the shift in focus of our marketing efforts versus last year. The shift in the mix and upgraded assortment resulted in an overall increase in the average ticket and average unit retail price, although traffic declined for the period. "The third quarter was softer than anticipated from both a sales and margin perspective. While we were pleased with August sales, we have not recovered the momentum that had been established prior to hurricanes Katrina, Rita and Wilma. For the quarter, lost store selling days related to hurricanes were 344 days this year compared to 188 days last year. Discounting to drive sales during the later part of the quarter adversely impacted margins relative to last year," noted Mr. Carreker. The Company noted that it anticipates a loss for the third quarter in the range of $0.11 to $0.13 per share which includes approximately $0.07 per share gain on the sale of a building and land not utilized in operations. During the third quarter, the Company opened twelve stores including four BombayKIDS stores in the combination format and closed eight stores ending the quarter with a total of 494 locations including 387 Bombay stores, 59 BombayKIDS stores, and 48 outlet stores. Mr. Carreker continued, "Although pleased with progress made from both an assortment and product presentation standpoint, we are cautious about the fourth quarter. We believe our inventory position is excellent, and our marketing plans and packages are well positioned for the balance of the year. We are concerned that economic pressure due in part to higher fuel prices, could adversely affect discretionary spending during the holiday season. While improving, store traffic trends have not yet regained pre-Katrina and pre-fuel price increases traffic levels. We now expect holiday sales to come later and with more sales promotion required than previously anticipated; however, we do not anticipate the same level of clearance markdowns as last year. At this point, we believe the largest variable lies in the amount of sales promotion that will be required to meet planned sales." The Company plans to release third quarter results on Wednesday, November 16, 2005 after the close of the stock market. You are invited to listen to Bombay's conference call with management that will be conducted on Thursday, November 17, 2005 at 10:00 a.m. Central Time. The Company will review the third quarter results as well as the outlook for the remainder of Fiscal 2005. 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/ . For those who are unable to listen to the live broadcast, a telephone replay will be available for 72 hours beginning at 12:00 p.m. Central Time at 800-633-8284. The access code is 21226536. The call will also be available for replay for 45 days on the investor relations page of the Bombay website. The Bombay Company, Inc. designs, sources and markets a unique line of home accessories, wall decor and furniture through 494 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. http://www.newscom.com/cgi-bin/prnh/20051026/BOMBAYLOGO http://photoarchive.ap.org/ 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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