EARNINGS CLIMB 39.9% IN QUARTER AT LOEHMANN’S
NEW YORK — Boosted by higher margins, Loehmann’s Holdings Inc. banged out a 39.9 percent gain in earnings in the third quarter ended Oct. 28.
The off-pricer, based in The Bronx, N.Y., earned $2.5 million in the quarter, up from $1.8 million a year earlier. Operating earnings gained 8.7 percent to $7.4 million from $6.8 million.
Sales declined 6.1 percent to $99.4 million from $105.8 million, reflecting the closing of 11 weak stores this year. Same-store sales dipped 1.3 percent. The decline was attributed to warm weather in many regions. Loehmann’s, which has 69 stores, is privately owned but files quarterly results with the Securities & Exchange Commission because of public debt outstanding. An initial public offering was filed in September, but postponed in late October because of poor market conditions.
The bottom-line improvement reflected a gain in gross margins to 32.9 percent of sales from 30.5 percent. The company continues to shift to products with higher average margins, and reduce markdowns and shrinkage.
Selling, general and administrative expenses in the quarter rose to 22.6 percent of sales from 21.3 percent. The company said that as of Oct. 28, it was in full compliance with all covenants of its debt agreements. — Fairchild News Service