Home / Knowledge / News / Sales plummet at Frederick's of Hollywood in Q1FY'13
Sales plummet at Frederick's of Hollywood in Q1FY'13
13
Dec '12
Frederick’s of Hollywood Group Inc announced the financial results for its fiscal 2013 first quarter ended October 27, 2012.

Fiscal 2013 First Quarter Compared to Fiscal 2012 First Quarter:
• Net sales decreased 20.8% to $22.4 million from $28.4 million.
• Comparable store sales decreased 17.0%.
• Total store sales decreased 20.8% to $15.2 million.
• Direct sales decreased 19.1% to $6.5 million.
• Other revenue, consisting of shipping revenue, commissions earned on direct sell-through
• Programs and breakage on gift cards decreased 31.9% to $0.8 million.
• Gross margin, as a percentage of net sales, decreased to 27.0% from 33.7%. This decrease is attributable to an increase in product and shipping promotional offers during the second half of the year.
• Net loss applicable to common shareholders was $5.2 million, or $(0.13) per diluted share, compared to a net loss of $2.3 million, or $(0.06) per diluted share.
• Adjusted EBITDA from continuing operations was a loss of $3.9 million compared to a loss of $1.1 Million. A reconciliation of GAAP results to Adjusted EBITDA from continuing operations, a nonGAAP measurement, is provided in the accompanying table.

“We have been concerned that, since the recession began, customers have been conditioned for major price reductions.  We experienced firsthand the difficulty of trying to move away from such promotional activity this quarter when we tested customer tolerance for significantly lower promotional activity.  While we anticipated a drop in sales, we experienced a larger than anticipated decline in customer traffic at our stores and on our eCommerce site. As a result, we revised this strategy and have returned to higher levels of promotional activity,” stated Thomas Lynch, the Company’s Chairman and Chief Executive Officer.

“As previously disclosed, we are now sharing some of the costs of our promotional activities with our vendors, which will help offset some of the costs of the increased promotions. Over the past few months, we have launched several new product categories at our stores and on our eCommerce site, which are gaining customer awareness.  Our goal for these new product lines is to expand the reach of the ‘Frederick’s of Hollywood’ brand. We believe the strength of our brand with consumers will continue to help the Company through this difficult economic period,” concluded Mr. Lynch.  

Frederick's of Hollywood

Must ReadView All

Textiles | On 29th Sep 2016

CAI keeps 2016-17 cotton output at 336 lakh bales

The Cotton Association of India (CAI) has estimated cotton crop for...

Courtesy: Nandan Denim

Textiles | On 29th Sep 2016

Nandan Denim to raise Rs 100 crore through FPIs

Indian denim fabric producer Nandan Denim Ltd (NDL) plans to raise Rs ...

Apparel/Garments | On 29th Sep 2016

Outlook for Cambodia’s economy remains robust: ADB

Backed by 9.4 per cent growth in exports from the garment and...

Interviews View All

Spokesperson
Hugo Boss

Dinaz Madhukar
DLF Emporio and DLF Promenade

Nitin Soni
Dolphin Jingwei Machines

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Jay Ramrakhiani
Occasions Elegance Wear

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

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
September 2016

September 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search