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post #1 of 46 Old 11-14-2007 Thread Starter
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Insult, meet injury...

This just in from a reputable source...

West Marine’s sales declined by 4.1 percent to $187.5 million for the third quarter compared to 2006, but its net income for the same period was $2.9 million, up by 81 percent over the third quarter of ‘06. CEO Peter Harris attributed this to tighter inventory controls and better customer service.

Funny Mr. Harris didn't mention shamless overpricing of items or taking advantage of a slightly mentally challenged customer base...

Guess I should lay off the triple expressos for breakfast, eh?
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post #2 of 46 Old 11-14-2007
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Mr. Harris doesn't seem to understand that having lower profit margins and more sales will probably be far better for the bottom line over the long run. As the prices at WM get higher, more people will shift to alternate vendors, and once at alternate vendors, are probably going to be unwilling to tolerate WM's business practices again.

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post #3 of 46 Old 11-14-2007
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I'm no economist but, if Worst Marine's sales declined by 4.1%, but their income rose by 81% - isn't this indicative of extreme price-gouging? Surely "tighter inventory controls" didn't save them $2.9 million by thwarting cutomer shoplifting and employee thefts.

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post #4 of 46 Old 11-14-2007
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While Insult can meet Injury, I don't know anyone that's met this "better customer service" that he refers to.

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Yup... pretty extreme price gouging. And I seriously doubt it is sustainable... think about it... given those figures, if they lost another 5% of sales...they'd double income???
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I'm no economist but, if Worst Marine's sales declined by 4.1%, but their income rose by 81% - isn't this indicative of extreme price-gouging? Surely "tighter inventory controls" didn't save them $2.9 million by thwarting cutomer shoplifting and employee thefts.

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post #6 of 46 Old 11-14-2007
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Just bought 16 oz. Woody Wax at Defender for $26.99. West Marine is $37.99. Guess where I'll be going from now on.
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post #7 of 46 Old 11-14-2007
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Like that bad Nike motto;


"Just Don't Do It".............

BTW, the only things I've purchased from WM in the last 16 months or so were magazines, despite the never ending daily e-mail offers I get. There's a lotta other stores out there, Kidz......
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post #8 of 46 Old 11-14-2007
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Ummm...I have been among th loudest here complaining about West prices AND mismanagement...but look at the numbers guys. $2.9 million profit on 187 million in sales is a net profit margin of 1.6%. This also means they only made 1.6 million on 179million in sales last year or .89% profit.
Neither profit margin represents even DECENT performance and an 81% increase over last year is simply statistics.

Having explained that...it appears that the original poster got it wrong. The profit went from 2.9 million LAST year to 5.3 million this year which was a gain of 83%...or a 2.8% profit margin. http://www.boston.com/business/artic..._profit_rises/

GROSS Margins...which is initial profit on sales (price - cost) were 30.7 percent. Down from 34.7 percent in the prior quarter BUT up from 28% during the same quarter last year. THIS is evidence that the profit is coming not only from lower inventory and "improved customer service" but from RAISING prices.
The SEC has initiated an investigation on how they have accounted for and reported inventory in the past.
Sounds like the old shell game to me.
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post #9 of 46 Old 11-14-2007
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It is amazing in that today, in the time of internet information and availability of competitors that businesses can continue to act the way I've heard about West Marine and stay in business.

Totally NOT a political comment; but the Internet really is a democratizing influence on business and society. Think of the options we now have in making purchases, major or insignificant, that were not easily available 15 years ago.

You can "good ol' days" all you want; but in some (many?) ways we are living in the best times in history.

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But I think It's Only For My Money
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post #10 of 46 Old 11-14-2007
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In So Cal, we call that the Paramount Studio method of accounting...........
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