Fiscal 2013 Third Quarter Compared to Fiscal 2012 Third Quarter:

- Net loss applicable to common shareholders was $643,000 or $(0.02) per diluted share, compared to net income of $3.3 million or $0.09 per diluted share. The $643,000 net loss includes a $952,000 gain related to a change in the fair value of a warrant issued in connection with the $10 million Series B preferred stock transaction

- Adjusted EBITDA was a loss of $396,000 compared to a gain of $4.5 million.  A reconciliation of GAAP results to Adjusted EBITDA, a non-GAAP measurement, is provided in the accompanying table

-  Net sales decreased 22.8% to $23.3 million from $30.2 million

- Comparable store sales decreased 20.5%

- Total store sales decreased 23.6% to $14.5 million

- Direct sales decreased 16.7% to $8.0 million

- Other revenue, consisting of shipping revenue, commissions earned on direct sell-through programs, breakage on gift cards and product sales to our licensing partner in the Middle East, decreased 50.6% to $0.8 million 

- Gross margin, as a percentage of net sales, was 39.9% as compared to 50.8%

- Selling, general and administrative expenses decreased by $1.5 million to $10.1 million, or 43.3% of sales, from $11.6 million, or 38.3% of sales

Fiscal Nine Months Ended April 27, 2013 Compared to Fiscal Nine Months Ended April 28, 2012:

- Net loss applicable to common shareholders was $15.8 million, or $(0.41) per diluted share, compared to a net loss of $2.6 million, or $(0.07) per diluted share.  The $15.8 million net loss includes a $952,000 gain related to a change in the fair value of a warrant issued in connection with the $10 million Series B preferred stock transaction

- Adjusted EBITDA was a loss of $11.8 million compared to a gain of $1.2 million.  A reconciliation of GAAP results to Adjusted EBITDA, a non-GAAP measurement, is provided in the accompanying table

- Net sales decreased 23.1% to $70.0 million from $91.1 million

Comparable store sales decreased by 17.7%

Total store sales decreased 21.1% to $45.1 million

Direct sales decreased 23.8% to $22.6 million 

Other revenue, consisting of shipping revenue, commissions earned on direct sell-through programs, breakage on gift cards and product sales to our licensing partner in the Middle East, decreased 45.0% to $2.3 million

- Gross margin, as a percentage of net sales, was 30.3% as compared to 38.5% 

- Selling, general and administrative expenses decreased by $2.4 million to $33.9 million or 48.3% of sales, from $36.3million, or 39.8% of sales.

Frederick's of Hollywood