USA: Gadzooks Reports Second Quarter Results
On a fully diluted basis, the company reported a loss per share of $0.14 compared to earnings per share of $0.17 for the corresponding period a year ago.
Net sales for the quarter increased 13.1 per cent to $72.6m compared to $64.2m a year ago. Same store sales for the quarter declined 8.9 per cent versus a 5.7 per cent increase in the second quarter of fiscal 2000.
Year-to-date net income fell to $1.1m from $4m for the prior year period. Earnings per share on a fully diluted basis were $0.11 for the first half of fiscal 2001 versus $0.43 for the prior year period.
Year- to-date net sales were $143.4m, up from $127.2m for the comparable fiscal 2000 period. Same store sales were down 6.8 per cent for the first half of fiscal 2001, compared to an 11.1 per cent increase for the first half of fiscal 2000.
"We are obviously disappointed with our second quarter results as both sales and merchandise margins were well below plan," said Jerry Szczepanski, chairman and chief executive officer.
"The second quarter markdowns that had such an impact on our merchandise margins did, however, enable us to position our inventories for the third quarter. We entered the third quarter with total inventory per square foot down slightly from the prior year and spring/summer seasonal merchandise down more than 20 per cent per square foot."
Mr Szczepanski continued: "As mentioned in our July sales commentary, our sales trends improved during each week of the month. Through the first two weeks of August, we have seen a continuation of that trend. Our inventory position and improvement in same store sales trends give us reason to be cautiously optimistic about our operating prospects for the second half of the year."
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