(Filed Under Financial and General Interest News). Frederick’s of Hollywood Group, Inc. reported that its first-quarter net loss expanded to $2.3 million, or 6 cents a share, from $1.2 million, or 3 cents a share, in the year-ago period.
Net sales dropped less than 1 percent to $28.4 million from $28.6 million in the first quarter of fiscal 2011. Total store sales rose 3.8 percent to reach $19.1 million, while same-store sales increased 5.5 percent.
The retailer pinpointed the widening loss on promotional activities and shipping offers "which led to a decrease in other revenue and negatively impacted our gross margin," stated chairman and C.E.O. Thomas Lynch. "We also experienced a $627,000 reduction in margin assistance from our vendors in the first quarter of fiscal 2012, compared to the same period in the prior year."
Frederick’s of Hollywood Group, Inc. currently operates 123 stores as well as Fredericks.com and mails over 15 million catalogs annually.
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