HE-RO’S LATEST QUARTER SHOWS BLACK FOR FIRST TIME IN 2 YEARS
NEW YORK — The He-Ro Group Ltd. recorded its first quarterly profit in two years with the three months ended Nov. 30.
The eveningwear maker earned $399,000, or 6 cents a share, in the latest quarter, against a loss of $1.7 million a year ago. Reflecting restructuring and discontinued divisions, sales dropped 32.5 percent to $17.2 million from $25.5 million.
In the six months, He-Ro earned $125,000, or 2 cents a share, against a loss of $22.9 million a year ago. Sales fell 60.5 percent to $31.7 million from $60.4 million.
Under its restructuring program, which began in October 1993, He-Ro refocused on its core evening and special occasion divisions, consisting of Black Tie by Oleg Cassini and Niteline by Della Roufogali labels, and its 24 He-Ro outlet stores. It discontinued daytime moderate and bridge-price dresses, sportswear and suits.
William J. Carone, chairman, said the profits reflect “continued progress under the strategic restructuring program, despite a difficult retail climate.”
He-Ro also said it has signed an agreement with its bank group for a maximum credit facility of $12 million through April 30. As part of the pact, the estate of the company’s late founder and ceo, Herbert Rounick, who died in September 1993, will put $1 million into the firm as debt subordinated to the bank loan. — Fairchild News Service