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Wickes Net Down in Quarter, Up for Year

March 20, 1987

Wickes Cos. reported a $2.5-million loss for the fourth quarter, compared to net income of $28.6 million in the same quarter a year ago.

Operating income was $72.7 million for the three months ended Jan. 31, up nearly 40% from $52 million in the same period of the previous fiscal year. Sales of the Santa Monica-based company rose to $1.4 billion from $885.3 million, up 59%.

The loss for the quarter was the result of sharply higher interest expense and a $6.9-million extraordinary charge that represented an adjustment of tax payments from previous quarters, the company said.

For the year, Wickes recorded net income of $83.8 million, compared to net income of $76.1 million in the previous fiscal year, a 10% increase. Operating income was $259.9 million, a nearly 76% increase from the previous year's $148 million.

Sales rose 70% to $4.8 billion from $2.8 billion.

The results include the recently purchased operations of Collins & Aikman Corp. from December, 1986; of Grace Home Centers West and Orchard Supply Hardware from July 1, and of the Homecrafters Warehouse chain from Sept. 5. Results of the previous fiscal year, which ended Jan. 25, 1986, included the operations of the consumer and industrial products group of Gulf & Western Industries from Aug. 1, 1985.

Wickes Chairman Sanford C. Sigoloff said the most recent fiscal year was "a productive year in terms of our increase in sales, our earnings increase and the quality of the assets we purchased."

Most of the company's segments registered gains, although the apparel and hosiery operations performed "below expectations," Sigoloff said.

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