LITTLETON, MA - August 11, 2008 - Dover Saddlery, Inc. (NASDAQ:DOVR), the leading multichannel retailer of equestrian products, today reported financial results for the second quarter ended June 30, 2008.
Total revenues for the second quarter were $19.9 million, compared to $20 million in the second quarter of 2007. Retail store channel revenues increased 19.2% to $5.9 million, primarily due to the opening of new Dover Saddlery stores. Direct channel revenues decreased 6.6%, attributable to soft consumer demand. Same-store-sales were up 3.6% for the second quarter compared with the prior year.
Net income for the second quarter was $250,000, a decrease of 33.5% from $376,000 for the second quarter of 2007. Resulting earnings per diluted share were $0.05, versus earnings per diluted share of $0.07 in the corresponding period of the prior year.
"Despite challenging market conditions, we achieved an increase in same-store-sales in the second quarter and we had a very successful Grand Opening at our new store in Branchburg, New Jersey," said Stephen L. Day, president and CEO of Dover Saddlery. "I am also very pleased to report that all the retail stores are performing well and our proprietary software model is proving very effective in correctly locating new retail stores."
For the first six months of 2008, total revenues were $37.6 million, a decrease of 2.5% from $38.6 million for the same period in 2007. Revenues from the retail channel increased 16.5% to $10 million and direct channel revenues dropped 7.9%. Net loss for the first six months of 2008 improved 80% to ($109,000) compared to a net loss of ($539,000) for the first six months of 2007. The resulting loss per diluted share improved to $(0.02) from $(0.11) in the first half of 2007. This improvement was due to reduced selling, general and administrative and litigation expenses.
Business Outlook 2008
Dover Saddlery is revising its full-year 2008 revenues guidance to a range of $81 million to $87 million, from previously issued revenue guidance of $87 million to $92 million. This is based upon the continuing consumer slowdown in the retail economy.
Increased revenues are expected to come mainly from the retail channel. The company is currently is planning to open two additional stores in 2008, bringing the total number of Dover Saddlery retail stores opened to three in 2008.
Conference Call and Webcast
Dover Saddlery will hold a conference call and webcast on Tuesday August 12th at 8:30 a.m. ET to discuss its first quarter results. To access the webcast via the Internet, please go to http://investor.shareholder.com/DOVR/events.cfm and click on the webcast icon. A telephone replay will be available from 11:30 a.m. ET August 12th until midnight Tuesday August 19th by dialing 719-4570820, pass code 6940988.
This press release includes "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including without limitation statements made about the company's business outlook for fiscal 2008, the prospects for overall revenue growth and the opening of and revenue growth from new stores. All statements other than statements of historical fact included in this press release regarding the company's strategies, plans, objectives, expectations, and future operating results are forward-looking statements. Although Dover believes that the expectations reflected in such forward-looking statements are reasonable at this time, it can give no assurance that such expectations will prove to have been correct. These forward-looking statements involve significant risks and uncertainties, including those discussed in this release and others that can be found in "Item 1A Risk Factors" of Dover Saddlery's Annual Report on Form 10-K for the fiscal year ended December 31, 2007.
Dover Saddlery is providing this information as of this date and does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise. No forward-looking statement can be guaranteed and actual results may differ materially from those Dover Saddlery projects.