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Frederick’s: Hollywood Sizzle Line
Frederick’s: Hollywood Sizzle Line

Added: May 2010

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current news

Frederick’s 4q Sales -5.9%

(Filed Under Financial and General Interest News). Although Thomas Lynch, chairman and C.E.O of Frederick’s of Hollywood Group Inc., cited business improvements in the company’s fourth quarter results released on October 25, this was not yet reflected in the company’s finances.

Net sales during the fourth quarter ended July 31 decreased 5.9 percent: to $29.1 million from $30.9 million during last year’s fourth quarter, with store sales down 5.5 percent, comparable store sales down 3.5 percent and direct sales, which include catalog and website operations, down 4.2 percent. Net loss from continuing operations increased to $4.9 million from $3.3 million.

Still, Lynch reported that he expects Frederick’s licensing program, launched in January of this year, to yield a return over the next year. The company has licensed the Frederick’s of Hollywood name to Blue by Yoo for swimwear; Mystery House for sexy costumes; Roffe Accessories for scarves, belts and shirts; and Silver Moon Creations for jewelry.

“These agreements have effectively launched our licensing program and are leading the way for Frederick’s of Hollywood to become a comprehensive lifestyle brand for sexy women,” Lynch said in a statement. “Each agreement will ramp up separately over the next year and generate a new, higher margin revenue compared to our traditional retail and direct-to-consumer operations.”

During the fiscal year ended July 31, net sales decreased 5.6 percent: to $133.9 million from $141.8 million. Store sales dropped 6.2 percent, with comparable store sales down 5.5 percent. Direct sales decreased 4.6 percent.

For further information, contact Thomas Rende, C.F.O of Frederick’s of Hollywood, by calling (212) 798-4700.

more Financial and General Interest News >>

Published 10-27-2010 by Amanda Torres Price

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