Harold's Stores Inc, a chain of upscale ladies' and men's specialty apparel stores, announced operating results for the second quarter and year-to-date period ended July 29th 2006.
For the second quarter, the company reported a net loss of $5.0 million, or $0.81 per share, compared to a net loss of $2.9 million, or $0.53 per share, in the same period of the previous year.
During the year-to-date period ending July 29th 2006, the net loss was $6.0 million, or $1.02 per share, as compared to a net loss of $2.1 million, or $0.46 per share, in the same period of the prior year.
"Our second quarter loss was primarily a result of sales being below expectations, which required us to take incremental markdowns during the quarter on ladies' spring and summer merchandise," said Leonard Snyder, Interim CEO.
"Fortunately, our inventory ownership of this clearance merchandise has been reduced to manageable levels." Snyder continued, "Our customers' initial reactions to fall merchandise, which is classically-inspired and consistent with historically successful fall offerings, have been encouraging."
For the quarter, overall sales were $19.3 million, compared to $20.3 million for the same period in the previous year, a decrease of 5.0%. Total comparable store sales were down 9.4%, 9.2% in the full-line stores and 13.3% in the outlets. Direct sales (internet and catalog) were $1.2 million, nearly double last year's level of $670,000.
For the year-to-date, overall sales were $40.4 million, compared to $44.3 million for the same period in the prior year, a decrease of 8.8%. Total comparable store sales were down 13.3%, 13.6% in the full-line stores and 8.3% in the outlets. Direct sales (internet and catalog) were $2.4 million, up 47% from the year ago level of $1.6 million.
Founded in 1948 and headquartered in Dallas, Texas, Harold's Stores Inc, currently operates 42 upscale ladies' and men's specialty stores in 19 states. Its Houston locations are known as 'Harold Powell.'