Noodle Kidoodle and Zany Brainy, two of the nation's largest multiple-media chains, both reported sales and earnings gains for fiscal 2000.
At Noodle Kidoodle, sales rose 25% to $135 million on the strength of the opening of 16 new stores and a 1% gain in comparable-store sales. Operating income fell to $2.9 million from $3.7 million, although a tax carryforward of $7.3 million pushed net income up to $11 million in the year. Final results also reflect a $500,000 after-tax expense associated with upgrading the company's Web site.
Plans for fiscal 2001 include opening a new distribution center near Nashville that will service about half of Noodle Kidoodle's stores; the company also expects to open at least 10 new outlets in the year.
Zany Brainy, the children's multiple-media store that went public last spring (News, June 14, 1999), said that revenues for the fiscal year ended January 29, 2000, jumped 43.2% to $241.2 million. The company also reported net income of $6.9 million, compared to pro forma net income of $1.8 million in fiscal 1999. Earnings in fiscal '99 excluded a one-time tax credit from recognizing the gain of a net operating loss carryforward.
The company attributed the gain to the opening of 28 new stores in the year, the launch of its e-commerce site and a comparable- store gain of 4%. The only sour note was a weak January that dragged same store sales down to a 1% increase for the fourth quarter. Slower sales of popular items, such as Beanie Babies, and bad weather in several major markets were cited as reasons for the disappointing month.
Looking ahead to fiscal 2001, the company said it is on track to open 25 new stores and has signed leases to enter new markets in Florida and Mississippi. Two stores will be opened in the greater Orlando area and a third in Jackson, Miss.
