Trans World Entertainment Corporation (TWMC), a specialty retailer of entertainment products, swung to a net profit for the quarter ended May 02, 2015. The company has made a net profit of $0.19 million, or $ 0.01 a share in the quarter, against a net loss of $0.39 million, or $0.01 a share in the last year period. Revenue during the quarter dropped 10.61 percent to $77.96 million from $87.22 million in the previous year period. Gross margin for the quarter expanded 193 basis points over the previous year period to 39.51 percent. Total expenses were 99.13 percent of quarterly revenues, down from 99.83 percent for the same period last year. This has led to an improvement of 70 basis points in operating margin to 0.87 percent.
Operating income for the quarter was $0.68 million, compared with $0.14 million in the previous year period.
"The quarter was highlighted by a comparable store sales increase of 18% in our emerging trend and electronics categories and a 190 basis point increase in gross margin," commented Mike Feurer, Company chief executive officer. "The improvement in gross margin, which was achieved through disciplined inventory control, better price management and a shift in mix to higher margin categories, helped us deliver a year over year improvement in net income. In addition, we increased our cash on hand at the end of the quarter by $13 million driven by a $19 million reduction in inventory." Mr. Feurer added.
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