RICHMOND, Va., Jan. 14, 2011 /PRNewswire/ -- RoomStore, Inc. (OTC Bulletin Board: ROOM) today reported results for the three quarters ending November 30, 2010.
Through the first three quarters of fiscal year 2011, RoomStore recorded a net sales increase of $11.3 million or 4.7% over the prior year. Comparable store sales for the same nine-month period ending November 30, 2010 increased $11.1 million or 6.4% over the nine-month period ending November 30, 2009.
Increased costs, which are detailed in the Company's Form 10-Q filed with the SEC today, had a negative effect on the Company's results of operations. The Company incurred a loss of $9.8 million for the first three quarters of fiscal year 2011, compared to a loss of $6.8 million for the same period in fiscal year 2010. Looking forward, the one-time $400,000 cost of consolidating the Company's two computer systems will result in cost savings of over $250,000 per year. The Company receives approximately 600 shipping containers per month from overseas vendors. During the third fiscal quarter, freight costs peaked to an average of $4,500 per container. In 2011, these freight costs have moderated, and now average $3,500 per container, resulting in a cost reduction of approximately $600,000 per month.
RoomStore has maintained strong inventory positions for most of its core line-up, and management continues to evaluate operating strategies and structural changes and to effectively respond to sales volumes which have been far below historical levels. Curtis C. Kimbrell, president and chief executive office said: "RoomStore has successfully weathered significant economic forces, and looks forward to improving market share and performance when our national economy begins to improve."
Certain statements in this news release contain forward-looking statements, which are subject to risks and uncertainties. These statements can be identified by the use of forward-looking terminology such as "believes," "estimates," "expects," "may," "will," "should," or "anticipates," and the negative thereof or other variations of such terms. Factors that might cause actual results to differ materially from such forward-looking statements include, but are not limited to, the risk factors described and the other uncertainties detailed from time to time in the reports the Company has filed with the SEC.
SOURCE RoomStore, Inc.
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