FREDERICK’S OF HOLLYWOOD SEES RED INK AHEAD IN 4TH QUARTER
NEW YORK — Frederick’s of Hollywood Inc. said Friday it will post a $2.4 million aftertax charge resulting in a net loss for the fourth quarter ending Sept. 3.
The company said that charge is related to the closing of 12 underperforming stores, disposal of weak merchandise and changes in store displays and fixtures.
Frederick’s, based in Los Angeles, did not disclose which stores will close or what merchandise will be dropped.
Frederick’s stock closed Friday at 4 1/4, down 1/4, on the New York Stock Exchange.
George W. Townson, chairman, president and chief executive officer, said, “The write-off reflects an aggressive program to improve the company’s operating results over the long term.
“We are in the process of thoroughly evaluating all aspects of our operations, as well as testing new merchandising and marketing strategies.”
Townson added it is too early to determine the extent of the loss in the quarter.
In last year’s fourth quarter, Frederick’s earned $1 million or 12 cents a share, on sales of $29.1 million.