MOVIE STAR CUTS 3-MONTH LOSS
NEW YORK — Movie Star Inc. narrowed its fourth-quarter loss to $370,000 from $1.02 million a year earlier, helped by improved gross margins and lower overhead costs.
The latest quarter included a $100,000 gain related to the abandonment of leased premises.
Sales for the three months ended June 30 slipped 5.1 percent to $13.3 million from $14.1 million.
Movie Star said its improvement resulted from a combination of management’s ability to focus on the core intimate apparel business, as well as consolidation and realignment of operations.
For the year, Movie Star earned $519,000, or 4 cents a share, after a $560,000 gain on the purchase of subordinated debentures. Last year, it lost $5.2 million after a $1.1 million charge related to the abandonment of leased premises.
Sales slumped 27 percent to $61.5 million from $84.1 million. The company said the decline was primarily due to the divestiture of the Schwabe men’s work and leisure shirt division. Sales were also depressed by fewer sales of intimate apparel due to the weak retail environment and efforts to eliminate low-margin business.
In a separate development, Movie Star has named Melvyn Knigin president. He will also continue as chief operating officer. The presidency has been vacant since 1996. Saul Pomerantz was promoted to executive vice president and will continue as chief financial officer.
Geoffrey L. Bob has joined Movie Star as president of the Cinema Etoile product line. Bob was an executive at I. Appel Corp., a sleepwear and loungewear company, for more than 10 years. Knigin had been president of the Cinema Etoile division.