USA: Deb Shops Profit Plunges On Soft Sales
Teen apparel chain Deb Shops Inc on Thursday posted a sharp plunge in first quarter net profit to $300,000 from $3.3 million in the year-ago period.
The Philadelphia-based operator of 331 stores said in a statement net sales fell nine per cent to $70.2m from $77m last year.
The retailer continues to expect fiscal 2004 sales to be flat versus fiscal 2003 based on a projected mid-single digit same-store sales decrease offset by net new store growth.
President and CEO, Marvin Rounick, stated: "The first quarter saw a confluence of events that contributed to our performance. In combination, the war, the weather, higher gas prices and the economy negatively affected same store sales and therefore contributed to our profit decline.
"Despite the current results, however, we remain focused on store level operations, and in particular, inventory management. After a careful review, we are comfortable with our current inventory levels heading into the remainder of the second quarter.
"That said, the weather and the economy will still remain an important factor in terms of recovery."
- Fashion fit for the future – strategies for speed
- Digitisation to drive new apparel-making models
- Will new Vietnam wage hinder competitiveness?
- Under Armour Lighthouse will disrupt production
- How TAL Apparel is staying ahead of the game
- Gap to shutter all UK Banana Republic stores
- M&S "unappealing" clothing a barrier to growth
- Reebok Liquid Factory reinvents shoe production
- Bangladesh tops China as lead cotton importer
- MAS Holdings shares commitment to sustainability
- Africa-Med strategic sourcing review – comparing East Africa, North Africa and Turkey
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Apparel (GLOBAL) - Industry Report
- Global Sports and Fitness Wear Market 2016-2020