Crumbs lowers outlook after second-quarter loss
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NEW YORK – Crumbs Bake Shop, Inc. suffered a net loss attributable to shareholders of $2,752,000 in the second quarter ended June 30, which compared with a loss of $439,000 in the same quarter of the previous year, the company reported Aug. 8.
Net sales increased 11.5% to $12,350,000 from $11,081,000 in the same quarter of the previous year even though 49 stores in the same-store sales base recorded a sales decrease of $1.7 million. The other stores attributed $2.9 million in sales. Same-store sales represent the change in sales for stores after their 15th full calendar month of operation.
Crumbs Bake Shop, which operates cupcake specialty stores, lowered its full-year outlook. The company now expects annual sales of about $53 million, which is down from a previous estimate of $57 million, and adjusted losses before interest, taxes, depreciation and amortization of $4.9 million, which compares to a previous estimate of losses of $3.9 million.
Crumbs Bake Shop opened seven mall-based stores and three kiosks in, or adjacent, to current trading areas in the second quarter. Through the first half of the year the company opened a total 18 mall-based stores, including 10 in-line stores and eight kiosks. Crumbs Bake Shop has reached agreements and expects to close at least five street-level stores in Connecticut, California, Illinois and New York City by the end of the year.
“While we are not pleased with our performance, we remain focused on the initiatives and strategies that we have discussed in the past and which we still believe will be the vehicles that will ultimately change the trajectory and vitality of our business in the future,” said Julian R. Geiger, president and chief executive officer of Crumbs Bake Shop, which now operates 78 locations in 12 states and the District of Columbia.