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Trans World's Year End Disappoints

ALBANY, NY-Hit by a drop in music sales, Trans World Entertainment said it was disappointed in last year's results and will transition the firm into "a full entertainment center."

By Beverly Ford | Updated on March 02, 2007

ALBANY, NY-Trans World Entertainment Corp. boosted its retail operation by 243 stores in fiscal 2006, took in $10.2 million in earnings and drove sales up 19% to $1.471 billion, yet the results proved disappointing to company officials challenged by big-box competition and declining music sales.

“We were disappointed with our 2006 results,” said Robert Higgins, Trans World’s chairman and CEO, vowing improved results in 2007.

The Albany, NY retailer of music, movies, video games and other specialty products said the $10 million in net income was due to a one-time tax gain from last year’s purchase of Musicland Holding Group, the bankrupt entertainment retailer that it acquired in March for $122.3 million. Without that gain, net income was $1.3 million, down from $2.9 million a year earlier. The retailer, which has nearly 1,000 stores in the United States, Puerto Rico and the Virgin Island, under a variety of chains that include the f.y.e. banner, said comparative store sales fell by 6% in fiscal 2006. This is the second year of same store sales declines for the company.

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