AC Moore Arts & Crafts posts 3Q loss, lower sales

AC Moore Arts & Crafts posts bigger 3rd-quarter loss as promotions hurt margins, revenue falls

• On 10:49 am EST, Friday November 6, 2009

NEW YORK (AP) -- A.C. Moore Arts & Crafts Inc. posted a bigger third-quarter loss on Friday, saying promotions aimed at getting customers in its stores crimped the craft store operator's margins. Revenue declined 9 percent.

CEO Rick Lepley said the retailer was "highly promotional in the quarter."

"We are encouraged with the customer count increase from the second quarter, suggesting that shoppers were pleased with our advertising message and promotions," he said,

But investors indicated they weren't too happy, sending its shares down 54 cents, or 12.4 percent, to $3.80 in morning trading.

The company lost $12.9 million, or 53 cents per share, in the three months ended Oct. 3. It lost $7.5 million, or 37 cents per share, a year earlier.

Revenue fell to $106.1 million from $116.7 million.

Analysts polled by Thomson Reuters expected a smaller loss of 7 cents a share and higher revenue of $109.6 million. The earnings estimates typically exclude one-time items.

Sales at stores open at least one year declined 7.7 percent. These sales are a key measure of retailer performance because they measure growth at existing stores and exclude those from newly opened ones that can skew the comparison.

Selling, general and administrative expenses slipped to $53.2 million from $53.4 million.

The company has 134 stores located in the Eastern United States from Maine to Florida and also sells over the Internet.

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