BBA Bombay CO

FORT WORTH, Texas, Jan. 4 /PRNewswire-FirstCall/ -- The Bombay Company, Inc. (NYSE:BBA) reported today that total revenue for the five-week period ended December 31, 2005 decreased 6.4% to $100.5 million from $107.4 million for the five week period ended January 1, 2005. Same store sales for stores open more than one year declined 3.5%. Total revenue for the forty-eight week period ended December 31, 2005 decreased 1.7% to $528.7 million compared to $538.0 million for the comparable period last year. Same store sales declined 2.0% for the year-to-date period. (Logo: http://www.newscom.com/cgi-bin/prnh/20051026/BOMBAYLOGO ) James D. Carreker, Chairman and Chief Executive Officer, noted, "The holiday season was much softer than we had anticipated. As part of our strategic repositioning, the decision to improve the quality of our merchandise and increase average unit retail prices adversely affected conversion rate, particularly in the mall-based stores during the holiday period. We believe that the changes are critical to positioning ourselves for the future although adversely affecting short-term results. Customers in our off-mall locations responded more positively than the mall customers, which we believe validates our strategy to continue the migration of store locations from mall to off-mall. "While we were pleased with the sales of our seasonal product, we experienced weak sales of decorative accessories, jewelry boxes, small accent tables and clocks. We believe that there is an opportunity to improve sales through improved presentation for the holidays. Early in December, we realized that, during the holidays, presenting giftable items within the 'rooms' format was not as effective as our traditional 'classification' style of presentation. We subsequently increased our presentation of giftable items by massing them throughout the store. Next year, we plan to clear more furniture floor models in advance of our holiday presentation, which will allow for better classification presentation for the period between Thanksgiving and New Years. "For December, Canada reported a low single digit increase in same store sales while the US operations reported a mid-single digit same store sales decline. Our off-mall stores had positive same store sales and outperformed our mall-based stores. Some of our older mall-based stores continue to generate negative same store sales and increased losses. We are investigating the early closing of under-performing locations and accelerating the shift in the mix of real estate portfolio from mall to off-mall." Based upon November and December results, the Company expects fourth quarter earnings per share to be in the range of $.04 to $.10 per share before potential non-cash charges associated with asset impairment, valuation allowances and strategic changes that management believes are necessary. Although sales were lower than anticipated, the Company expects to year-end inventory levels to be within the $132 to $138 million range previously indicated. As of the end of the month of December, the Company has repaid all of its seasonal borrowings and has no long-term debt. The Bombay Company, Inc. designs, sources and markets a unique line of home accessories, wall decor and furniture through 501 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. Such factors include, among others, the following: general economic and financial market conditions which affect consumer confidence in the spending environment for home-related purchases; competition; seasonality; success of operating initiatives; new product development and introduction schedules; uninterrupted flow of product; acceptance of new product offerings; inherent safety of product offerings; advertising and promotional efforts; adverse publicity; expansion of the store chain; availability, locations and terms of sites for store development; ability to renew leases on an economic basis; changes in business strategy or development plans including risks associated with the strategy to move stores off-mall; availability and terms of borrowings or capital for operating purposes; labor and employee benefit costs; ability to obtain insurance at a reasonable cost; rising fuel and energy costs, availability and their impact on the operations of the business as well as impact on consumer spending; reliance on technology; security of the technological infrastructure; changes in government or trade regulations including duties on imports from China and the possibility that the scope of such duties will be expanded to encompass additional countries or product categories; risks associated with international business; fluctuations in foreign currency exchange rates; terrorism; war or threat of war; potential restrictions due to communicable diseases; regional weather conditions; natural disasters; labor relations and human resource practices; hiring and retention of adequate and qualified personnel and other risks and uncertainties contained in the Company's 2004 Annual Report on Form 10-K and other Securities and Exchange Commission filings as they occur. The Company undertakes no obligation to revise the forward-looking statements contained herein 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/

Copyright