West Marine Reports December 2004 Sales

    Business Editors

    WATSONVILLE, Calif.--(BUSINESS WIRE)--Jan. 5, 2005--West Marine, Inc. (Nasdaq:WMAR) today reported that net sales for the five weeks ended January 1, 2005 were $45.7 million, a 14.0% decrease compared to net sales of $53.1 million for the six-week period a year ago. Comparable store net sales for the five weeks ended January 1, 2005 decreased 5.3% compared to the similar five-week period a year ago.
    Net sales for the thirteen weeks ended January 1, 2005 were $117.5 million, a decrease of 5.5% from net sales of $124.3 million for the fourteen-week period a year ago. Comparable store net sales for the latest quarter decreased 3.3% compared to the similar thirteen-week period a year ago.
    Net sales for the fifty-two weeks ended January 1, 2005 were $682.4 million, an increase of 3.3% from net sales of $660.3 million for the fifty-three week period ended January 3, 2004. Comparable store net sales for the year increased 0.3% compared to the similar fifty-two week period for the prior year.
    Eric Nelson, CFO of West Marine, said, "Sales for December were softer than we anticipated, especially in our Northeast region. However, because December gross margins were better than expected, we are on target to reach the low to midpoint of our 2004 earnings guidance of $1.25 to $1.28 per share, which represents a significant increase over earnings of $0.99 per share last year. We also remain comfortable with our previous earnings guidance for 2005, ranging from $1.49 to $1.53 per share."
    West Marine, Inc. is the nation's largest specialty retailer of boating supplies, with 375 stores in 38 states, Canada and Puerto Rico, and more than $680 million in annual sales. The Company's successful catalog and Internet channels offer customers approximately 50,000 products -- far more than any competitor -- and the convenience of being able to exchange catalog and Internet purchases at its retail stores. The Company's Port Supply division is the country's largest wholesale distributor of marine equipment serving boat manufacturers, marine services, commercial vessel operators and government agencies.

    Special Note Regarding Forward-Looking Statements

    This press release includes "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include, among other things, statements that relate to West Marine's future plans, expectations, objectives, performance, and similar projections, as well as facts and assumptions underlying these statements or projections. Actual results may differ materially from the results expressed or implied in these forward-looking statements due to various risks, uncertainties or other factors. Risks and uncertainties include the Company's ability to increase sales at its existing stores and expand through the opening of new stores, competitive pricing pressures, inventory management and shrink issues, the market share erosion faced by the Company's Direct Sales division as West Marine and its competitors open new stores, weather-related issues, the level of consumer spending on recreational water sports and boating supplies, fluctuations in fuel prices and other risk factors described from time to time in West Marine's filings with the Securities and Exchange Commission, including West Marine's quarterly report on Form 10-Q for the period ended October 2, 2004. West Marine assumes no responsibility to update any forward-looking statements as a result of new information, future events or otherwise.

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CONTACT: West Marine, Inc. Eric Nelson, 831-761-4489 (Senior VP and CFO) Russell Solt, 831-761-4229 (Director of IR)

KEYWORD: CALIFORNIA INDUSTRY KEYWORD: SPORTS APPAREL/TEXTILES RETAIL SOURCE: West Marine, Inc.

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