NEW YORK — Teen apparel retailer Deb Shops posted earnings in its third-quarter results, reversing a year-ago loss produced by a one-time $7.4 million charge from the sale of its Atlantic Book Store subsidiary.
This story first appeared in the November 26, 2002 issue of WWD. Subscribe Today.
The Philadelphia-based specialty retailer with 327 stores under the Deb, Deb Plus and Tops ‘n Bottoms names said it recorded income of $3.3 million, or 24 cents a diluted share, against a loss amounting to $289,000, or 2 cents, in the same quarter last year. However, when excluding the loss, earnings were $4.3 million, or 32 cents, last year. Net sales for the quarter were $81.2 million, a 1 percent rise over year-ago sales of $80.5 million.
Blaming the disappointing quarter on declines in consumer confidence as well as the economy, Marvin Rounick, president and chief executive, said in a statement, “This translated into an overall slowdown in mall traffic, particularly in September, and soft back-to-school sales.” On a positive note, he said the quarter ended with October comparable-store sales increasing 2.4 percent.
The company also said it expects fourth-quarter earnings per share ranging from 80 to 85 cents a share and full-year earnings of $1.80 to $1.85.
For the nine months, income surged ahead 63 percent to $13.8 million, or 99 cents a diluted share, compared with income of $8.5 million, or 62 cents. Excluding the loss from the subsidiary’s sale, year-ago income was $13.1 million, or 96 cents. Sales advanced 5.3 percent to $234.9 million from $223 million.