Sales at Wilsons fall
American specialty retailer of leather outerwear, accessories and apparel, Wilsons the Leather Experts Inc., has announced a fall of 26.6% in December’s sales, ended January 1, 2005, compared with the same period in 2003. The five week period saw sales drop to $120.9 million from $164.7 million in a year-on-year comparison. For the year-to-date sales have also decreased, falling by 14.4% from $479.7 million to $410.6 million.
Sales for the current fiscal year include $20.8 million in liquidation sales resulting from the transfer of inventory to an independent liquidator in conjunction with the previously announced closing of 111 stores that was completed in April 2004. Comparable store sales decreased by 4.7% for the five-week period but this was an improvement on the same period in 2003, when the company reported a fall of 6.8%. Year-to-date comparable sales have slipped 0.8% compared with a 7.2% decrease recorded for December 2003.
"Our comparable store sales results for December were lower than we expected. Reduced mall traffic negatively impacted sales during the first three weeks of the month as consumers continued their pattern of delayed holiday spending. Comparable store sales improved substantially in week four as a result of the calendar shift and week five saw a significant increase in both mall traffic and post Christmas sales momentum. Margins for December came in higher than expected and we are cautiously optimistic that the sales trend that began post Christmas will continue through January," commented CEO of Wilsons, Michael Searles.
