NEW YORK — Decreased sales and heavy promotions drove Goody’s Family Clothing Inc.’s third-quarter results into the red.
The Knoxville, Tenn.-based firm registered losses of $3.1 million, or 10 cents a share, for the period ended Nov. 2. This compared with year-ago earnings of $276,000, or 1 cent.
Results for the most-recent quarter included one-time expenses aggregating to 3 cents a share aftertax, related to a severance agreement and fees incurred during a potential acquisition of the company. Discussions surrounding a possible acquisition ended Nov. 1.
Sales for the 328-door chain dipped 3.9 percent to $268.3 million in the quarter from $279.3 million. Comparable-store sales decelerated by 3.9 percent.
"The company was more promotional this quarter when compared to plan and last year’s third quarter in an effort to stimulate sales and reduce inventories," said chairman and chief executive Robert Goodfriend in a statement. Lower-than-planned sales, more promotional activity and the special items resulted in the quarter’s loss, he said.
Inventories, which were 7.3 percent below year-ago levels at the close of the quarter, were also below plan. Selling, general and administrative expenses rose by 120 basis points to 30.9 percent of sales.
For the nine months, Goody’s managed profits of $3.7 million, or 11 cents a share. This compared favorably with year-ago losses of $12.5 million, or 39 cents.
Sales for the period inched up 0.8 percent to $835.9 million from $829.4 million a year ago. Comps waned 1.6 percent.
Lower comps so far this year and higher-than-planned advertising expenditures in the second half have Goody’s looking for an SG&A reduction for the full year of a less than the previously expected 100 basis points.
Supermodel @helenachristensen teamed up with longtime friend and designer @camillastaerk on a joint @paredeyewear collaboration. The lineup features three styles and 11 offerings, all of which embody a vintage feel. Get all the details on how they celebrated the collab on WWD.com. #wwdaccessories #wwdeye (📷: @slovekinpics)
“It’s a hard industry to keep motivated, as well, so finding different subjects and people is what makes it worth it – when you’re like, oh, I’ve met great people, I feel like I’ve done something good, and I feel proud of having done this,” said French actress Stacy Martin on being grateful for the variety of roles she’s take on. Read @ktauer’s full interview with Martin on her her latest film “Godard Mon Amour.” #wwdeye (📷: @danieldorsa)
After showing in front of the Eiffel Tower for his last two women’s ready-to-wear collection, it looks like @anthonyvaccarello may be heading to the Big Apple. Sources say the designer will stage his next @ysl show in NYC on June 6. Get all the details on WWD.com. #wwdnews #wwdfashion (📷: @aitorrosasphoto)
EXCLUSIVE: Two and half months after John Targon, cofounder and codesigner of Baja East, was hired as creative director of the contemporary division at Marc Jacobs, he has left the company, WWD has learned. Marc Jacobs International, which is owned by LVMH Moët Hennessy Louis Vuitton, confirmed Targon’s departure in a statement: “John Targon is a talented designer and we appreciate the work he has done here. Ultimately working together did not make sense for the brand and we wish him the best.” Read the story by @jessiredale, link in bio. #wwdnews
@theluxurycollection is officially launching a collection, tapping Sofia Sanchez de Betak for the capsule. Over 30 styles will be featured in the Chufy x The Luxury Collection, debuting next month at Bergdorf Goodman, The Webster, FiveStory and more. De Betak, known as “@chufy,” drew inspiration for the collection from her trips to Japan in the past year #wwdfashion
@lhd, founder and CEO of @thewebster, has teamed up with @lebonmarcherivegauche for the European launch of her ready-to-wear line, LHD. The launch will come with an exclusive pop-up opening today that’s set to run through May 20. Located on the second floor, it carries her debut Miami-themed resort collection, launched in November as see-now-buy-now. #wwdfashion