BARNEYS POSTS NET LOSSES FOR JAN., FEB.
NEW YORK — Barneys Inc. reported operating earnings before special items of $2.6 million and strong sales in the eight-week period ended March 1. However, after bankruptcy costs and special charges, net losses swelled to $7.7 million, according to court papers filed Thursday.
Operating earnings exclude real estate payments of $3.3 million and fixtures and equipment rental costs of $991,000. Including these charges, the upscale chain would have shown an operating loss of $828,000.
Barneys underscored its 22.1 percent same-store sales gain at its full-price and outlet stores. However, the figure reflects the impact of the store’s Chapter 11 filing in January 1996, leading to a period of curtailed shipments and some resulting volume loss in the early part of last year.
Total sales in the eight-week period increased 12.7 percent to $57.1 million, reflecting the closing of the Short Hills, N.J., store in July 1996. Barneys now operates 13 full-price stores and nine outlets.
The net loss came after $1.9 million in depreciation and amortization costs, $1.1 million in interest, $3.6 million in reorganization costs, and $84,000 for taxes. Reorganization costs included $2.8 million for professional fees.
Barneys gross profit was $27.2 million, 47.7 percent of sales, while selling, general and administrative expenses were $25.3 million, or 44.3 percent of sales.
In January, the chain generated operating earnings before special items of $633,000 and a net loss of $4.9 million on sales of $25 million. In February, Barneys showed a $1.8 million operating profit excluding special charges and a $2.8 million net loss on sales of $32.1 million.