US: Frederick’s of Hollywood narrows Q2 loss
- Q2 net loss US$5.1m, down from $10m
- Net sales down 3.1% to $23.5m
- Retail sales down 8% to $14.2m
Intimate apparel retailer Frederick’s of Hollywood Group saw its second-quarter net loss almost halve, despite a 3.1% reduction in sales and an 8% fall in retail revenues.
Direct sales were up 9.7% to $8.9m in the period, but comparable store sales fell 4.1%, the US company said.
“We are moving ahead with our strategy to maximise higher-performing retail locations, which will allow us to reduce overall costs and effectively utilise limited resources,” said Thomas Lynch, chairman and CEO.
Frederick’s closed 16 stores in the past three months and plans to shutter another two stores during April, Lynch added.
In December, the group announced it would be taken private by a consortium of HGI Funding and other shareholders, who together own 88.7% of the company, in a deal which valued the business at $11m.
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