US: NexCen Brands narrows Q3 losses

17 November 2009 | Source: just-style.com

Brand management company NexCen Brands Inc, owner of the TAF and Shoebox New York retail franchise concepts, has narrowed its third quarter losses as it continues with efforts to turn the business around.

For the three months to 30 September, losses from continuing operations were $1.0m or $0.01 per share, compared with a loss of $32.3m or $0.57 per share, a year earlier.

Last year's results included impairment charges of $28.1m, the company said.

Total revenues fell 11% to $10.8m from $12.2m a year earlier, which the company blamed on lower consumer spending and retail traffic.

Operating expenses tumbled 78% to $9.1m, and operating income swung to $1.7m from an operating loss of $28.9m last time.

CEO Kenneth J Hall said: "While our third quarter top line continued to be impacted by the decline in mall traffic and retail spending, we further reduced our operating expenses to more than offset the decline in revenues.

"The positive results we have generated to date in 2009 are indicative of the substantial changes we have made to our business in the past year, the progress we have made in improving efficiencies across our organisation, and our commitment to enhancing our franchise operations."