A.C. Moore Arts & Crafts, Inc. (Nasdaq:ACMR) today announced sales
results for the fourth quarter and year ended December 31, 2007.
Sales for the fourth quarter of 2007 were $177.3 million, a decrease of
10.4% versus sales of $197.8 million during the fourth quarter of 2006.
Same store sales for the fourth quarter 2007 decreased by 14.5% versus
the same period in 2006. Sales for the year ended December 31, 2007 were
$559.7 million, a decrease of 5.1% over sales of $589.5 million in the
same period in 2006. Same store sales decreased by 10.3% for the twelve
month period.
During the fourth quarter 2007, the Company closed two store locations
that historically incurred losses. Also, as part of the 2007 year-end
physical inventory, the Company captured inventory at the stock-keeping
unit ("SKU”) level
for the first time in the Company’s history.
The SKU-level inventory allows the Company to implement a perpetual
inventory for all stores.
Rick A. Lepley, Chief Executive Officer, stated, "Obviously,
we are disappointed with our fourth quarter results. The softness in
seasonal and children’s categories along with
our increased seasonal emphasis resulted in deeper discounting than
planned. As we begin 2008, we are pleased to have implemented a
perpetual inventory that we believe will assist in controlling inventory
and reducing out-of-stocks.”
On February 12, 2008, the
Nasdaq Listing Qualifications Panel granted
the Company’s request for continued listing on
The Nasdaq Stock Market, provided, among other things, the Company files
its Form 10-Q for the quarter ended September 30, 2007 on or before
April 1, 2008. The Company anticipates that it will be able to comply
with this deadline and also expects to file any prior financial
statements requiring restatement before the end of the first quarter of
2008, subject to completion of the internal inventory accounting review
and restatement process. The Company is in the process of finalizing its
2007 financial information and prior financial statements requiring
restatement.
About A.C. Moore:
A.C. Moore provides a vast assortment of traditional and contemporary
arts and crafts merchandise for a wide range of customers. The Company
serves customers through its 134 stores located in the Eastern United
States from Maine to Florida and nationally via its ecommerce site, www.acmoore.com.
For more information about A.C. Moore, visit our website at www.acmoore.com.
This press release contains statements that are forward-looking
within the meaning of applicable federal securities laws and are based
on A.C. Moore's current expectations and assumptions as of this date. The Company undertakes no obligation to update or revise any
forward-looking statement whether as the result of new developments or
otherwise. These statements are subject to a number of risks and
uncertainties that could cause actual results to differ materially from
those anticipated. Factors that could cause actual results to differ
from those anticipated include, but are not limited to, the Company’s
ability to implement its business and operating initiatives to improve
profitability, customer demand and trends in the arts and crafts
industry, inventory risks, the effect of economic conditions and
gasoline prices, the impact of unfavorable weather conditions, the
impact of competitors’ locations or pricing,
the availability of acceptable real estate locations for new stores,
difficulties with respect to new system technologies, difficulties in
implementing measures to reduce costs and expenses and improve margins,
supply constraints or difficulties, the effectiveness of and changes to
advertising strategies, difficulties in determining the outcome and
impact of litigation, the impact of the threat of terrorist attacks and
war, the Company’s ability to maintain an
effective system of internal control over financial reporting, the
results of the Company’s review of its
inventory accounting practices, the Company’s
ability to regain compliance with Nasdaq listing standards, the Company’s
ability to meet its expected filing date for the Form 10-Q for the third
quarter of 2007 and any prior financial statements requiring restatement
and other risks detailed in the Company’s
Securities and Exchange Commission filings.
