Dave & Buster's Entertainment Inc.’s same-store sales declined 5.9 percent in the fourth quarter ended Feb. 4, and the company is working to rebuild momentum, the CEO said.
The Dallas-based parent to big-box entertainment and restaurant venues said same-store sales for the year were down 0.9 percent.
Dave & Buster’s had 14 consecutive quarters of positive same-store sales until its third quarter, when the brand was down by 1.3 percent.
“Recent sales trends in our comparable stores have been disappointing, and we are working diligently to rebuild momentum by evolving the brand,” said Steve King, Dave & Buster’s CEO, in a statement before the company’s call with analysts.
With a tax benefit in fourth quarter, Dave & Buster’s income was up 30 percent to $35.6 million, or 85 cents a share, compared to $27.4 million, or 63 cents a share, in the prior-year quarter. Revenue in the quarter increased 12.9 percent, to $304.9 million from $270.2 million in the same period a year ago.
“While results were below our early December guidance, we remain confident in our long-term prospects,” said Brian Jenkins, Dave & Buster’s chief financial officer. “We have a strong track record of disciplined growth, and our operating team continues to execute well in a more challenging environment while recognizing the need to adapt and adjust.”
Jenkins said the company had higher pre-opening expenses for stores that it will open in the 2018 fiscal year. In guidance, the company said it planned to open 14 to 15 new stores in the current 2018 fiscal year.
Dave & Buster's, founded in 1982, owns and operates 110 units in 37 states, Puerto Rico and Canada.
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