US: Frederick's of Hollywood narrows Q4 loss
- Q4 net loss narrowed to $3.9m
- Sales fell 21.2% to $20.3m
- CEO sees long-term profitability
Lingerie and swimwear retailer Frederick's of Hollywood Group has narrowed its fourth-quarter net loss despite posting a 21.2% drop in sales.
Net loss narrowed to US$3.9m for the three months ended 28 July, compared to $7.2m last year. Operating loss also narrowed to $2.9m, against a $6.4m the same period last year.
The company, which operates 118 specialty retail stores, saw net sales tumble to $20.3m, while comparable store sales declined 10.1%. Gross margin, as a percentage of net sales, increased to 32.4% from 29.4%.
"We have made significant adjustments to our operations over the past few years that have led to improvements in our overall business model," said chairman and CEO Thomas Lynch.
"While there is no question that executing our turnaround strategy has been challenging, we have steadily reduced operating losses and believe that we are on a path toward achieving long-term profitability."
Full-year net loss narrowed to $6.4m, compared to $12.1m last year. Net sales slipped 6.9% to $111.4m, while comparable store sales edged up 0.5%.
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