FREDERICK'S OF HOLLYWOOD POSTS LOSS IN 2ND PERIOD

NEW YORK--Hit by heavy markdowns, Frederick's of Hollywood Inc. reported a loss of $686,000 in the third quarter ended June 1.
In the year-ago quarter, the specialty retailer and catalog operator earned $440,000, or 5 cents a share.
Sales in the latest quarter rose 5.9 percent to $35.3 million from $33.3 million. The Frederick's of Hollywood stores sustained a $2 million operating loss for the period, about twice as large as that of a year ago. Total sales rose 8 percent to $17.4 million. Same-store sales were up 6 percent.
The mail-order business reported operating profits for the quarter slumped about 50 percent to $806,000. Sales rose 4 percent, reflecting increased catalog distribution.
"Significantly greater markdowns, aimed at liquidating slower-moving and promotional merchandise, along with increased promotional expenditures, affected profitability of our stores during the third quarter," George W. Townson, chairman and chief executive officer, said in a statement.He added that the performance was also hurt by higher paper and postage costs and a lower-than-expected response to its swimwear catalogs.
For the nine months, the firm earned $664,000, or 8 cents, against earnings of $3.6 million, or 42 cents. Sales rose 5.1 percent to $116.5 million from $110.8 million.
Last month, Frederick's and the trusts set up by its founders hired Janney Montgomery Scott Inc. as a financial adviser to explore ways to enhance shareholder value, including selling the company.

To Read the Full Article
SUBSCRIBE NOW

Tap into our Global Network

Of Industry Leaders and Designers

load comments
blog comments powered by Disqus