"We continue to get strong results when we move a store from a mall to an off-mall location in the same market," said James D. Carreker, the company's chairman and CEO. During the first half of the year 100 of the off mall stores posted the same profit as 281 units in malls, he said.
Overall, the company had a tough Q3. Same-store sales dropped 18% during the quarter from the same year-ago period, and dipped 15% over the first nine months. Bombay also reported a net loss of about $7.3 million. "The third quarter was a challenge for us," Carreker said.
Officials blamed a decline in average ticket prices, from $89 to $86 in the last year, as well as a decrease in overall traffic. Revenues also declined, from $135.4 million to $126.7 million. The company expects to post a loss for the year.
Bombay executives plan to open 54 stores next year, and 44 of them will be transfers of mall units into open-air centers. The firm opened 28 stores and closed seven over the quarter. The company also plans to expand its BombayKIDS concept, of which it has 47. Carreker called that chain Bombay's biggest growth opportunity.
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