BELLEVUE, Wash. — Battered by lack of demand for apparel, Lamonts Apparel Inc. reported third-quarter losses widened to $5.6 million before a special charge, from $3.1 million a year earlier.
In the quarter ended July 30, Lamonts took a $7.2 million charge for closing three full-line stores and all five of its Lamonts for Kids units. Leonard M. Snyder, chairman and chief executive officer, said these units represent only 5 percent of sales. Most of the charge will be noncash writeoffs, he added.
The charge deepened the net loss to $12.9 million. Lamonts said results were further dented by decreased gross profits and the reversal of a deferred tax credit in the year-ago period.
Sales declined 6.3 percent to $55 million from $58.7 million, and same-store sales were down 7.9 percent. Snyder noted sales were hit by a lack of demand for apparel. Poor results in May were partially offset by stronger revenues in June and July, Snyder said.
At the end of the quarter, the company operated 57 stores in the Pacific Northwest, Alaska, Montana, Idaho, Utah, Minnesota and Nebraska.