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.

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.

To access this article, click here to subscribe or to log in.

To Read the Full Article
SUBSCRIBE NOW

Tap into our Global Network

Of Industry Leaders and Designers

load comments
blog comments powered by Disqus