Harold's Stores Inc a chain of upscale ladies' and men's specialty apparel stores, announced sales results for the second quarter and year-to-date periods ended August 4, 2007.
For the quarter, overall sales were $17.5 million, compared to $19.3 million for the same period in the previous year, a decrease of 9.2%.
Total comparable store sales were down 12.8%, 12.3% in the full-price retail stores and 23.2% in the outlets. Direct sales (internet and catalog) were $1.0 million, down 16.3% compared to last year's level of $1.2 million.
For the year-to-date, overall sales were $39.9 million, compared to $40.4 million for the same period in the prior year, a decrease of 1.1%.
Total comparable store sales were down 6.4%, 5.9% in the full-price retail stores and 17.6% in the outlets. Direct sales (internet and catalog) were $2.6 million, up 8.5% from the year ago level of $2.4 million.
"June and July were extremely challenging months for the Company. We believe that sales were impacted by several factors: lower inventory levels, primarily in sale and clearance merchandise; reduced spending on marketing to our core customers; and the unseasonably cool and rainy weather in the Company's core markets of Texas and Oklahoma that had a negative impact on summer merchandise sales," said Ron Staffieri, Chief Executive Officer.
"Customer traffic declined during the quarter. Our purchase levels were significantly lower than last year, and despite the sales misses, we own approximately 18% fewer units of inventory at quarter end this year versus last year. The sales declines for the quarter led to the need for greater markdowns than planned, negatively affecting our gross margin for the quarter."
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