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current news

Frederick’s Returns To Profit In 3q


(Filed Under Financial and General Interest News). Frederick’s of Hollywood returned to marginal profit during the third quarter ended April 24, 2010, citing net income of $218,000, or 1 cent per diluted share, compared to a net loss of $2.1 million, or 8 cents, per diluted share, during last year’s third quarter.

“We delivered our first quarterly profit since beginning our strategic turnaround despite the impact of reduced consumer spending on discretionary items,” Thomas Lynch, chairman and chief executive officer of Frederick’s of Hollywood, said in a statement. “Our bottom-line results for the third fiscal quarter reflect a substantial increase in gross margins from 38 percent to 40 percent and a deduction in expenses of $2.8 million.”

Net sales during the third quarter decreased 7.2 percent, to $43.4 million from $46.8 million, driven by an 8.5 percent total store sales decrease and a comparable store sales drop of 7.7 percent. Also driving this drop was the direct sales decrease 2.8 percent, and the wholesale sales drop of 11.7 percent, which accounted for 25.5 percent of the total decrease.


more Financial and General Interest News >>

Published 06-09-2010 by Amanda Torres Price

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