By Dean Seal

Lucky Strike Entertainment recorded an unexpected decline in revenue during the fiscal second quarter following an early slowdown in corporate events and a shortened holiday season.

The Richmond, Va., operator of bowling alleys and entertainment venues swung to a profit of $28.3 million for the quarter ended Dec. 29, from a loss of $63.5 million in the same period a year ago.

A change in the fair value of its earnout liability gave earnings a $19.7 million boost in the latest completed quarter, while it dented the bottom line by $64 million a year ago.

Quarterly revenue decreased 1.8% to $300.1 million. Analysts polled by FactSet had expected the top line to rise to $316 million.

Same-store revenue was down 6.2%, with acquisitions contributing to the top line.

The company's corporate events business was on hold early in the quarter due to concerns about the election outcome, Chief Executive Thomas Shannon said. The timing of Thanksgiving also shortened the holiday events window by a third this year, and New Year's Eve fell into the fiscal third quarter instead of the second, he said.

Shares slid 1.8% to $10.71 in premarket trading.

This is Lucky Strike's first earnings report since it rebranded away from the name Bowlero in a push to embrace more than just bowling alleys in its portfolio of venues.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

February 05, 2025 08:03 ET (13:03 GMT)

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