VALUE MERCHANTS REPORTS TOTAL SALES UP SHARPLY
VALUE MERCHANTS REPORTS TOTAL SALES UP SHARPLY MILWAUKEE, March 5 /PRNewswire/ -- Value Merchants, Inc.
(NYSE: VMI) reported an increase of $5.2 million, or 60.5 percent, in net revenues to $13.8 million from $8.6 million for the four weeks ended Feb. 29, 1992, compared with the same four weeks a year ago, ended March 2, 1991. Comparable store sales (stores opened before February 1991) declined $482,000, or 6.9 percent, due largely to disruptions in merchandise shipments to the company's retail stores.
Value Merchants, Inc. is a value retailer, operating 212 Everything's A $1.00 stores and 111 Toy Liquidators stores, and is the nation's largest wholesaler of close-out toy merchandise. At the close of this four-week period, Value Merchants, Inc. operated 323 stores compared with 200 a year ago. As previously reported, disruptions in toy merchandise distribution is being caused by the relocation of the company's Toy Distribution Center from Knoxville, Tenn. to Indianapolis. "Although we began some toy shipments from our new distribution center in Indianapolis in mid-February," Steven J. Appel, president and chief executive officer, said, "an optimum level of toy store inventory and merchandise mix is not expected to be achieved until early April." Everything's A $1.00 shipments were disrupted for 12 days to allow for the company to take a complete annual year-end physical inventory in its distribution center. "This action was taken to assure the accuracy of our inventories in view of our new distribution system and the initiatives we have taken to manage shrink," Appel said. "We are pleased with the initial results of our physical inventory. "Despite these disruptions and the resulting decline in February comparable store sales," he stated, "consolidated results for Value Merchants, Inc. were in line with the company's plan." The following table summarizes the sales performance for the four week period for the total company and its operating units: Net Sales - Total Operations (In Millions) Four Weeks Ended Feb. 29, 1992 March 2, 1991 Pct. Increase $13.8 $8.6 60.5 Net Sales - Retail Operations Percentage Increase from Prior Year Everything's A $1.00 No. of Stores Pct. Increase 1992 1991 4 Weeks Comparable Stores 104 104 (6.0) Total Stores 212 104 103.0 Toy Liquidators No. of Stores Pct. Increase 1992 1991 4 Weeks Comparable Stores 92 92 (8.8) Total Stores 111 96 6.7 Note: Comparable Stores are All Stores Opened Prior to February, 1991. -0- 3/5/92 /CONTACT: Gary I. Kastel of Value Merchants, Inc., 414-274-2976/ (VMI) CO: Value Merchants, Inc. ST: Wisconsin IN: REA SU:
LC -- CL007 -- 5322 03/05/92 09:34 EST
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|Date:||Mar 5, 1992|
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