Wilsons Leather: sales down 17.1% in January
Leather goods retailer Wilsons The Leather Experts Inc. announced results for January showing comparable store sales down 17.1% to $50.5 million compared with $65.2 million for January 2001. Sales for the fourth quarter ending February 2, 2002, fell 3.7% to $367.4 million compared with $381.5 million in the same period a year before. Sales for the full fiscal year increased 13.1% to $720.1 million.
The company blamed the fall in sales on a difficult retail environment, unseasonably warm weather, and a lack-lustre travel environment. Chief executive officer Joel Waller said that the company had suffered at the hands of external factors but insisted it was well placed for the Spring retail season.
During January Wilsons managed to decrease its inventory by 2.8% versus year-end levels last year despite an increase of 179 more stores compared with the same month in 2001. The company’s aggressive clearance of luggage products has also reduced luggage as a percentage of total inventory. The company believes that a heavier mix of accessories will improve sales and margins in these stores.
