NEW YORK — Slumping sales and the cost of new business investments deflated fourth-quarter earnings and ultimately pushed Gendis Inc. to a loss for the year.
For the quarter ended Jan. 31, the Winnipeg, Manitoba-based junior department and family clothing retailer saw earnings sink 81.1 percent to $625,000, or 4 cents a diluted share. Comparatively, the company reported earnings of $3.3 million, or 20 cents a share, in the year-ago period.
Sales for the period slid 6.1 percent to $89.3 million from $95 million reported in the same period a year ago. Comparable-store sales declined 4 percent.
During the quarter, the company shuttered 10 of its family-targeted SAAN stores. The company also closed one Red Apple store, the company’s clearance and discount concept.
For the year, the company swung to a loss of $9.1 million, or 60 cents a share, against earnings of $352,000, or 2 cents a share, in the previous year. Results were hampered by a $2.9 million charge associated with the settlement of an option held by a previous lender.
Property and equipment expenses expanded 48.2 percent to $11.2 million from $7.6 million the previous year.
Sales declined 3.1 percent to $311.7 million from $321.7 million.
— Ross Tucker