NEW YORK — Loehmann’s Holdings Inc. nearly doubled its third-quarter profits on double-digit increases in net and same-store sales.
In the three months ended Nov. 2, net income skyrocketed 90.5 percent to $5.4 million, or 73 cents a diluted share, from $2.8 million, or 41 cents, in the comparable quarter last year. Sales rose 13.3 percent, to $94.7 million from $83.6 million, and were up 12.1 percent on a comparable-store basis.
“The second consecutive quarter of double-digit comp-store sales increases maintains the momentum built early in the year and reflects our ability to continually offer our customers high-quality labels at a great value,” said Robert Friedman, chief executive officer. “Importantly, we experienced strong increases across all categories, with particular strength exhibited by our Back Room assortment of designer and bridge apparel as well as in our coat, sweater, shoe and men’s departments.”
Friedman added that strong earnings and cash flow allowed the company to redeem $15 million of the $26.4 million 11 percent senior notes outstanding, “which will result in significant interest savings going forward.”
During the quarter, the Bronx, N.Y.-based retailer opened a 25,000-square-foot store in Denver, replacing a 15,000-square-foot unit in that market, and opened a 28,000-square-foot store in Oak Brook, Ill. It currently operates 44 off-price specialty stores in 16 states.
Year-to-date, Loehmann’s net income more than tripled, to $12.2 million, or $1.67 a diluted share, from $3.9 million, or 58 cents, in the comparable period last year. This year’s profits include a pre-tax gain of $3.9 million from the sale of its headquarters in the Bronx, which added 36 cents to earnings per share. Sales rose 10.5 percent, to $263.4 million from $238.3 million, and were up 10.1 percent on a comp basis.
This story first appeared in the December 5, 2002 issue of WWD. Subscribe Today.