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

Apparel/Garments | On 4th May 2016

Ahead of FTA talks with China, Lanka worried about TPP

Even as Sri Lanka prepares for the third round of talks for a Free...

Textiles | On 4th May 2016

IMF predicts Asian growth to remain strong

The International Monetary Fund (IMF) expects growth in Asia and the...

Courtesy: GMAC Cambodia

Apparel/Garments | On 4th May 2016

Cambodia’s garment exports rise 13% in Q1

Garment and footwear exports from the Southeast Asian nation of...

Interviews View All

Nitisha Kapur
Breakbounce Streetwear

How is the market for streetwear faring in India? Is the demand same as in ...

Amrit Sethia
SOIE

What are the emerging trends in the intimatewear category for women in...

Wendy Wen
Messe Frankfurt (Hong Kong)

Can you elaborate on the role of sustainability in textiles? How is China...

Steve Cole
Xerium Technologies

<b><i>Steve Cole of Xerium Technologies discusses the industry. Xerium is...

Mr. Johan Berlin
Investkonsult Sweden AB

Mr. Johan Berlin is the majority shareholder and Managing Director of...

Carlos Richer
Richer Investment

Mr. Carlos Richer is the Director of Richer Investment, Diaper Consulting...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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
April 2016

F2F Magazine

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

SUBSCRIBE


Browse Our Archives

GO


<%@ language="VBScript" %>
feedback
We would love to hear from you about your experience using the new interface. A quick review of yours would help us give you a better experience.
Advanced Search