US: Frederick’s swings to Q3 profit
- Q3 net profit of US$3.3m, versus net loss of $0.4m
- Net sales down 7.4% to $30.2m
- Comparable store sales up 0.7%
Troubled lingerie and swimwear retailer Frederick’s of Hollywood returned to profit in the company’s third quarter, despite another decline in total sales.
Store sales were also down in the three months to 28 April, falling 3.3% to $19m and direct sales declined 9.2% to $9.6m.
“The positive steps that we have taken over the past two years to streamline and improve our operations have brought us closer to long-term profitability,” said Thomas Lynch, chairman and CEO.
“While there is still much left to accomplish, the company now has a more stable foundation upon which to build.”
Last month, Frederick’s announced that it was contemplating a possible sell-off or merger of the business, retaining investment bank Allen & Company to help in “evaluating and exploring a broad range of strategic alternatives”.
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