Dave & Buster’s Entertainment Inc. (NASDAQ: PLAY) reported financial results for the third quarter 2020 ended November 1st, 2020. Revenues amounted to USD 109. Million compared to USD 299.4 Million. Comparable store sales fell 66% of the 114 stores. Net loss reached USD 48 Million or USD 1.01 per share. Adjusted EBITDA loss tallied at USD 16 Million.
Brian Jenkins, Dave & Buster’s Chief Executive Officer, said, “During the third quarter we made significant progress safely re-opening stores while refining and implementing numerous initiatives that are accelerating our business recovery and positioning us for long-term success. Our sales recovery at re-opened stores peaked in late October at a 68% index compared to last year, with the top quartile of stores reaching a 91% index. Combined with the team’s continued discipline around our lean operating model, we achieved positive store-level EBITDA at 68 stores in the third quarter and 80 stores in the month of October.
Mr. Jenkins concluded, “We believe our strong sales recovery through late October and return to store-level profitability at the majority of our re-opened stores clearly illustrates the resilience of the Dave & Buster’s brand and validates our plan for navigating through this unique environment. However, we expect our fourth quarter sales and profitability will be significantly impacted by the recent resurgence of COVID cases and resulting operating limitations imposed by local jurisdictions. Despite this temporary setback, our resilient and committed team, our focused plan, enhanced liquidity, and our strong brand put us in position to bounce back quickly when the threat of COVID begins to subside.”
For the fourth quarter the company expects an overall comparable store sales decline of 71% and a sales index of 49% across an average of 71 open comp stores. 15 store net reclosures due to local mandates as there is one new store opening.