CHAUS REDUCES LOSSES IN QUARTER AS SALES SLIP
NEW YORK — Despite lower sales and heavy promotions, Bernard Chaus narrowed its loss to $4.9 million in the second quarter from $8.5 million a year ago.
In the quarter ended Dec. 31, sales for the moderate-priced sportswear manufacturer fell 8.2 percent to $46.5 million from $50.7 million.
Josephine Chaus, chairwoman, noted the second-quarter loss stemmed from “a combination of lower sales and higher promotional allowances as the company worked to accelerate sell-through of inventory at retail.”
She added that despite a tough women’s apparel market in the second quarter, the company “continued to make progress in reducing our overhead, managing our inventory tightly and focusing on substantive improvements in our products.”
Gross margins in the latest quarter increased to 15.7 percent from 12 percent, while selling, general and administrative expenses were cut to 23.5 percent of sales from 27.1 percent. Inventories were slashed 51 percent to $15 million as of Dec. 31, compared with a year ago.
In the half, Chaus posted a loss of $13.9 million after $9 million in restructuring expenses and costs related to the hiring of chief executive officer Andrew Grossman. The company lost $10.2 million a year ago.
Sales fell 7 percent to $111.9 million from $120.3 million. — Fairchild News Service