Wilsons announces third quarter deficit
Wilsons The Leather Experts Inc. has announced net losses of $13.7 million for the third quarter, amounting to an $0.80 per share loss. Total sales were up 29.8% to $141 million largely due to the purchase of travel businesses, but comparable store sales were down 14.3%.
The poor results were blamed on the recent warm weather and economic uncertainties in the US and world economy. Chairman and chief executive Joel Waller said: "The retail climate has been exceptionally difficult this quarter," but added "we continue to be a category-dominant specialty retailer in the leather goods and travel markets. We will continue to pursue a long-term strategy."
The company expects sales of between $390 and $405 million for the fourth quarter - incorporating the all-important holiday season - with earnings of $3.15 to $3.45 per share, assuming that normal weather patterns return.
