Fourth-quarter sales for women’s apparel cataloger/retailer Frederick’s of Hollywood decreased 18%, to $34.4 million, from $42.1 million for the same period last year. Same-store sales decreased 6.5%. Direct sales sank nearly 12%.
The company’s net loss was $7.02 million compared to net loss of $7.19 million last year.
For its fiscal year ended July 25, Frederick’s sales decreased 3.3%, to $176.3 million, from $182.2 million for the previous fiscal year. Same-store sales dropped 6.5% while direct sales decreased 10.4%, to $51.9 million, compared with $57.9 million.
Thomas Lynch, who took over the company helm as CEO in January, noted that the weak macro-economic conditions and the significant reduction in Frederick’s wholesale business “magnified the challenges of integrating our retail and wholesale divisions, and highlighted the need for additional capital resources, stronger management, enhanced brand stewardship and an improved business structure.”
Lynch said that some of the initial steps the merchant has taken during the past year, such as cost reductions, underperforming store closures and capital restructuring, are beginning to help. But, he added, “a number of our strategic initiatives, such as the vertical integration of our wholesale and retail operations and the launch of our brand initiatives to department stores and mass retailers, will take some time to impact our business.”