NEW YORK--Frederick's of Hollywood Inc. said its catalog business outperformed the retail store network in the second quarter.
With an increase in catalog distribution and higher productivity per catalog, operating profits in the mail order subsidiary jumped 77 percent on a 10 percent sales gain, Frederick's said.
Overall earnings rose 3.3 percent to $2.2 million, or 25 cents a share, from $2.1 million, or 24 cents, a year ago. Total sales rose 6.3 percent to $41.4 million from $39 million.
George W. Townson, chairman and chief executive officer, said Valentine's Day holiday sales "were soft for the retail store network due to the planned elimination of men's mainstream merchandise that was in our inventory a year ago."
In the retail division, sales rose 4 percent, but operating profits fell 13 percent in the quarter. Same-store sales increased 6 percent.
Frederick's, based in Los Angeles, operates 202 stores in 39 states. In the latest quarter, two stores were closed and eight were opened.
Townson also noted that higher selling, general and administrative expenses hurt second-quarter results.
In the six months ended March 4, earnings climbed 32.7 percent to $3.2 million, or 37 cents, from $2.4 million, or 27 cents, a year ago. Sales rose 10 percent to $77.5 million from $70.5 million.--Fairchild News Service

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

To Read the Full Article

Tap into our Global Network

Of Industry Leaders and Designers

load comments
blog comments powered by Disqus