Frederick’s of Hollywood Group Inc. ended its fiscal year in the red, but chairman and chief executive officer Thomas Lynch said better comparable-store sales in August and September showed the company was on the right track.
This story first appeared in the October 31, 2011 issue of WWD. Subscribe Today.
Fourth-quarter losses attributable to the company narrowed to $7.2 million, or 19 cents a share, from $12.5 million, or 35 cents, a year earlier. Sales for the three months ended July 30 fell 11.3 percent to $25.8 million from $29.1 million as comps fell 13.6 percent.
For the full year, losses narrowed to $12.1 million, or 31 cents a share, from $21.6 million, or 74 cents, the prior year. Sales for the 12 months dropped 10.6 percent to $119.6 million from $133.9 million, with an 11.9 percent comp decrease.
But Frederick’s, which has 123 stores as well as catalogue and online businesses, is focusing on the future.
“This is the beginning of a new era for Frederick’s of Hollywood, and the most noticeable change is the fashionable line of new products that were introduced in our stores and through our direct channel starting in late July,” Lynch said.
The company is also looking at new marketing initiatives to create customer demand, a revamp of its Web site and licensing arrangements at home and abroad. And industry veteran Don Jones was recently brought on board as president and chief operating officer.
In August, Frederick’s comparable-store sales inched up 0.2 percent, while September comps increased 8.7 percent.
“These preliminary results give us confidence that the impact of our initiatives will continue to enhance our business and contribute positively to our financial results in fiscal 2012 and beyond,” Lynch said.