Jamba's Q3 Soured by 5.5% Drop in Same-Store Sales
Nov 4th 2013 7:06PM
Updated Nov 4th 2013 7:08PM
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."
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