Wickes Posts 2nd-Quarter Income of $12.7 Million

Climbing back from its bout with bankruptcy reorganization, Wickes Cos. on Tuesday reported second-quarter net income of $12.7 million on sales of $840 million, up from net income of $12.2 million on sales of $805.5 million in the same quarter of 1984.

Operating income showed an even more dramatic increase, jumping to $42.2 million in the quarter ended July 27 from $15.3 million in the same period last year. Net interest expense for the quarter, related primarily to settlement of bankruptcy debt, was $30.2 million, compared to $4.3 million for the second quarter of 1984.

For the six months ended July 27, operating income rose to $53.6 million from $12.4 million in the same period last year, net income increased to $7.5 million from $6.1 million and sales moved ahead to $1.54 billion from $1.51 billion. Net interest expense was $47 million for the six months, compared to $9 million in the same period of 1984.

The improvement in operating income shows that the Santa Monica-based retailer is reaching its goals for the regeneration of its business, Wickes Chairman and Chief Executive Sanford C. Sigoloff said. Wickes emerged from bankruptcy law protection in January after operating for nearly three years under Chapter 11 of the U.S. Bankruptcy Code.

“In a truly sluggish second quarter (economically), which is one of our strongest quarters, we were able to do well,” Sigoloff said.