Financial reports: Franklin Covey, Successories

Catalog sales down at Franklin Covey Salt Lake City-based

Franklin Covey (NYSE: FC), a manufacturer/marketer of “personal management tools,” posted a net loss of $11.8 million for its fiscal third quarter ended May 25. That’s an improvement from the third quarter of fiscal 2001, when Franklin Covey lost $14.6 million.

Total sales for the quarter were $71.1 million, down 19% from $88.0 million for the third quarter of last year. Catalog and Web sales tumbled 28%, to $11.0 million from $15.2 million last year. Store sales fell 19%, primarily reflecting a 15% decline in average order size due to higher technology sales last year.

Successories shaves 1Q net loss Motivational products manufacturer/marketer Successories (Nasdaq: SCES) reported a net loss of $963,000 for its fiscal first quarter ended May 4. For the first quarter of fiscal 2001, the Aurora, IL-based company had posted a net loss of $1.6 million, which included a $219,000 extraordinary loss from the early extinguishment of debt.

Total revenue declined 9%, to $10.0 million. Direct marketing sales fell 5%, which the company attributes to a 47% reduction in prospecting catalogs. Sales to franchisees were down 37%, reflecting 16 fewer franchise stores operating this year than last year. Comparable store sales for company-owned retail stores dropped 15%, while overall store sales declined 8%.

Last month, Successories’ board of director told management to initiate steps to close all of its company-owned stores. Management has started negotiations to terminate leases of these stores and anticipates closing substantially all of them during this fiscal year.

Catalog Sales Down at Franklin Covey Salt Lake City–Franklin Covey (NYSE: FC), a manufacturer/marketer of “personal management tools,” posted a net loss of $11.8 million for its fiscal third quarter ended May 25. That’s an improvement from the third quarter of fiscal 2001, when Franklin Covey lost $14.6 million. Total sales for the quarter were $71.1 million, down 19% from $88.0 million for the third quarter of last year. Catalog and Web sales tumbled 28%, to $11.0 million from $15.2 million last year. Store sales fell 19%, primarily reflecting a 15% decline in average order size due to higher technology sales last year.

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