Frederick's of Hollywood clocks 7.4% dip in Q3 FY'12 sales

-         Direct sales (catalog and website operations) decreased 9.2% to $9.6million.

-         Other revenue, consisting of shipping revenue, commissions earned on direct sell-through programs, breakage on gift cards and product sales to the Company's licensing partner in the Middle East, decreased 13.5% to $1.6 million.

-         Gross margin, as a percentage of net sales, was 50.8% compared to 38.3%.  This increase is primarily attributable to a $4.2 million increase in vendor allowances received during the three months ended April 28, 2012 as compared to the three months ended April 30, 2011.

-         Selling, general and administrative expenses decreased by 7.3% to $11.6 million, or 38.3% of sales, from $12.5 million or 38.3% of sales.

Fiscal Nine Months Ended April 28, 2012 Compared to Fiscal Nine Months Ended April 30, 2011:

-         Net loss was $2.6 million, or $(0.07) per diluted share, compared to a net loss of $4.9 million, or $(0.13) per diluted share.

-         Net loss from continuing operations decreased to $2.6 million from $3.5 million.

-         There was no activity related to discontinued operations compared to a net loss of $1.4 million.

-         Net sales decreased 2.9% to $91.1 million from $93.8 million.

-         Comparable store sales increased by 3.6% as compared to the nine months ended April 30, 2011.

-         Total store sales increased 1.6% to $57.2 million.

-         Direct sales decreased 6.7% to $29.7 million.

-         Other revenue decreased 18.2% to $4.2 million.

-         Gross margin, as a percentage of net sales, increased to 38.5% from 37.7%. This increase was attributable to a $3.5 million increase in vendor allowances for the nine months ended April 28, 2012 as compared to the nine months ended April 30, 2011, which was partially offset by higher promotions during the nine months ended April 28, 2012 as compared to the same period in the prior year.

-         Selling, general and administrative expenses decreased by 3.8% to $36.3 million, or 39.8% of sales, from $37.7 million or 40.2% of sales

Frederick's of Hollywood Group Inc., through its subsidiaries, sells women's intimate apparel and related products under its proprietary Frederick's of Hollywood brand through 117 specialty retail stores.

Frederick's of Hollywood Group Inc