HomeBase to Increase Sales Force, Step Up Advertising

HomeBase Inc. said Monday it plans to hire more salespeople and increase advertising.

The Irvine-based home-improvement chain said it plans to spend $13 million on the program, which will have an adverse effect on profits next year.

For the fiscal fourth quarter ended Jan. 30, the company said it expects earnings of about $200,000, or 1 cent a share, compared with a loss of $3.9 million, or 10 cents a share, a year ago, while sales dipped to $309 million from $328 million.

For the year, the company expects earnings of $22 million, or 54 cents a share, compared with $17.8 million, or 47 cents a share, last year, excluding a special charge taken in the third quarter.

Sales for the year were $1.44 billion, compared with $1.48 billion in fiscal 1997.

HomeBase said it expects to announce final results on March 2.

As part of the program, HomeBase plans to increase inventory by 10% per store. That, coupled with increases in payroll and advertising, will cause profits to fall to the 39 cents to 43 cents a share range for the fiscal year ending January 29, 2000. HomeBase officials project that sales at stores open at least a year will grow 3% to 5%.