US: Frederick's of Hollywood posts Q1 loss amid lower revenue
- Net loss down to $4.46m
- Net sales decreased 12.6%
- "Turnaround strategy is on track"
Frederick's of Hollywood has reported a narrowed first quarter loss, and said its planned turnaround strategy was on track.
The intimate apparel retailer said that net loss applicable to common shareholders was $4.46m, compared to a loss of $5.29m in the same period last year.
For the fiscal 2010 first quarter ended 24 October 2009 the company's net sales decreased 12.6% to $37.2m from $42.6m. Total store sales decreased 3.9% while comparable store sales decreased 4.0%, the company said.
Gross margin, as a percentage of net sales, decreased to 33.9% from 34.5% in the same period last year. Selling, general and administrative expenses decreased by 14.6%.
Thomas Lynch, the company's chairman and chief executive officer, said: "The financial results for the first quarter of fiscal 2010 continue to reflect lower revenue due to weak macro-economic conditions and the significant reduction in our wholesale revenue. However, our turnaround strategy is on track. This strategy is aimed at creating greater operating efficiencies and more effectively capitalising on the Frederick's of Hollywood brand.
"We believe that the short-term and long-term initiatives that are underway will result in a clear path to growth and profitability."
During the current quarter, the company reported a same-store sales increase of 6% for the month of November and a 2% decrease for the four month period ended 21 November 2009.
Click here to view the company's full first quarter sales announcement.
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