(Filed Under Financial and General Interest News). While Frederick’s of Hollywood Group Inc. reported an increase in net sales for the first quarter of fiscal 2009 ended October 25, 2008, the company also suffered a $5.3 million net loss.
Net sales for the first quarter increased by 14.5 percent to $42.6 million from $37.2 million for the first quarter in 2009.
Wholesaler Movie Star Inc. and retailer Frederick’s of Hollywood merged to form Frederick’s of Hollywood Group Inc. in January 2008. According to the company, “the increase in net sales resulted from the addition of $9,436,000 of net sales from the wholesale division following the consummation of the merger. This increase was partially offset by a decrease in retail net sales of $4,058,000 to $33,129,000 for the three months ended October 27, 2007.”
The company’s $5.3 million loss compares to a loss of $3.9 million in the same period last year.
“As we anticipated, our first quarter results were significantly impacted by an unprecedented negative macroeconomic environment,” said Peter Cole, the company’s executive chairman.
“In response, we are continuing to reduce operating expenses, primarily through reductions in personnel. Since the consummation of the merger, other than store personnel, we have terminated approximately 15 percent of our domestic employees and have transitioned certain manufacturing support functions previously performed by some of these employees to our facility in the Philippines.
This net reduction in workforce has resulted in an annualized net salary savings of approximately $3.8 million.”see more
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