Bikini Village reports sharply higher Q1 loss; revenue also declines

SAINTE-JULIE, Que. – Beachwear retailer Groupe Bikini Village Inc. (TSX:GBV) has reported a sharply higher first-quarter loss as revenue also declined, partly as a result of a one-week delay in the start of the quarter.

The Quebec-based concern says its net loss in the 13-week period ended May 4 was $859,000 or 45 cents per share compared with a loss of $300,000 or 16 cents in the 2012 quarter, which ended April 28.

Revenue fell to $8.48 million from $9.7 million.

“In addition to the ongoing challenging retail conditions . . . sales were also negatively impacted by a shift of one week in the fiscal calendar,” the company said in its earnings release.

The result of this shift, combined with the seasonal fluctuations normally present in the company’s sales, is that the first quarter of 2013 lost one strong week of February sales with an average weekly run rate of $1 million and gained one week of softer sales in May, with an average weekly run rate of $400,000, it said.

In the second quarter, this situation will reverse, as the corporation gains one strong week in early August, also with an average weekly run rate of $1 million and loses the softer week in early May.

Meanwhile, the company said comparable sales decreased by 5.7 per cent in the quarter, although they gradually strengthened throughout March and April.

Groupe Bikini Village operates employs about 450 people at 55 stores in Eastern Canada.