Home / Knowledge / News / Apparel/Garments / Frederick's of Hollywood Q2 FY'13 sales fall 25.3%
Frederick's of Hollywood Q2 FY'13 sales fall 25.3%
19
Mar '13
Frederick's of Hollywood Group Inc. announced the financial results for its fiscal 2013 second quarter ended January 26, 2013.  The Company also reported that, effective March 15, 2013; it has terminated its employment agreement with Don Jones, the Company's President and Chief Operating Officer. The Company's CEO, Mr. Thomas Lynch, will assume Mr. Jones' duties.

Fiscal 2013 Second Quarter Compared to Fiscal 2012 Second Quarter:

-Net loss applicable to common shareholders was $10.0 million or $(0.26) per diluted share, compared to a net loss of $3.5 million or $(0.09) per diluted share
- Adjusted EBITDA from continuing operations was a loss of $7.5 million compared to a loss of $2.3 million.  A reconciliation of GAAP results to Adjusted EBITDA, a non-GAAP measurement, is provided in the accompanying table
- Net sales decreased 25.3% to $24.3 million from $32.5 million
- Comparable store sales decreased 15.7%
- Total store sales decreased 19.0% to $15.5 million
- Direct sales decreased 32.5% to $8.1 million
- Other revenue, consisting primarily of shipping revenue, commissions earned on direct sell-through programs and breakage on gift cards, decreased 49.5% to $0.7 million
- Gross margin, as a percentage of net sales, was 24.1% as compared to 31.2%
- Selling, general and administrative expenses increased by $0.5 million to $13.7 million, or 56.4% of sales, from $13.2 million, or 40.7% of sales

Fiscal Six Months Ended January 26, 2013 Compared to Fiscal Six Months Ended January 28, 2012:

- Net loss applicable to common shareholders was $15.2 million, or $(0.39) per diluted share, compared to a net loss of $5.9 million, or $(0.15) per diluted share
-Adjusted EBITDA was a loss of $11.4 million compared to a loss of $3.3 million.  A reconciliation of GAAP results to Adjusted EBITDA from continuing operations, a non-GAAP measurement, is provided in the accompanying table
- Net sales decreased 23.2% to $46.7 million from $60.9 million
- Comparable store sales decreased by 16.3%
- Total store sales decreased 19.9% to $30.6 million
- Direct sales decreased 27.2% to $14.6 million
- Other revenue, consisting of shipping revenue, commissions earned on direct sell-through programs and breakage on gift cards, decreased 41.4% to $1.5 million
- Gross margin decreased to 25.5% as compared to 32.4%
- Selling, general and administrative expenses decreased by $0.9 million to $23.8 million or 50.9% of sales, from $24.7 million, or 40.5% of sales

"We are disappointed by the operational and financial issues that have held us back from reconnecting with our customers, which led to sales results that were counter to much of the retail sector.  Therefore, we have implemented a plan to refocus on our lingerie products. This plan included the $10 million capital infusion from Five Island Asset Management LLC, a subsidiary of Harbinger Group Inc., which was announced just last week.

"This capital infusion will play an important role in stabilizing our business and will allow us to improve sales by maintaining appropriate inventory levels in the categories our customers are looking for.  We are continuing to balance our revenues and expenses, including having me assume the responsibilities of President and COO," stated Mr. Thomas Lynch, the Company's Chairman and CEO.

Frederick's Of Hollywood


Must ReadView All

Indian govt relaxes cabotage rule for cotton transport

Textiles | On 25th May 2018

Indian govt relaxes cabotage rule for cotton transport

The Government of India has relaxed cabotage rules for transportation ...

Courtesy: Teejay Lanka

Textiles | On 25th May 2018

Teejay Lanka doubles production capacity at Indian mill

Teejay Lanka, one of Sri Lanka’s largest textile manufacturers, has...

Courtesy: Messe Frankfurt/Yarn Expo Autumn edition

Textiles | On 25th May 2018

Yarn Expo Autumn 2018 scheduled earlier

Over 500 exhibitors are expected at the Yarn Expo Autumn 2018, being...

Interviews View All

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Top executives
Textile industry

Defining MSMEs on the basis of turnover makes it simpler to do business

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Mala Alwani

<div>Delhi-based fast fashion womenswear brand, Besiva, aims to bridge the ...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Samar Firdos
Arvind Ltd

<b>Samar Firdos</b>, Chief Manager (Design) at Lifestyle Apparel Denim...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search