Jamba's Q3 Soured by 5.5% Drop in Same-Store Sales

Bad weather and tightened consumer spending were to blame for Jamba Juice's less than optimal quarterly earnings results. According to a company statement, the challenging environment caused a drop in sales, operating income and margins, and same-store sales for the quarter.

Overall quarterly revenue dropped 6.3% to $61.4 million, compared with Q3 2012's $61.4 million, largely because of a 5.5% drop in company-owned comparable-store sales. This decrease rippled across many other fiscal statistics: Jamba's income from operations dropped 26.9% to $3.3 million as net income fell 34% to $2.7 million.

CEO James White called the quarter's results "atypical" of past performance and reassured investors that despite the lagging financial metrics, Jamba's "domestic and international development prospects are growing." White also said that the company's new JambaGO smoothie machines in grocery stores, gas stations, and other locations aims to "give many customers who are new to Jamba the opportunity to experience our great smoothies."

The article Jamba's Q3 Soured by 5.5% Drop in Same-Store Sales originally appeared on Fool.com.

Fool contributor Caroline Bennett and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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