Store opening costs take Danier into the red
The Toronto based leathergoods maker and retailer, Danier Leather, yesterday reported a 50% increase in losses during the summer quarter, citing the cost of adding more stores to its chain.
For the first quarter ended September 28 – the slowest period of the year - losses ran to $3.4-million or 49 cents a share, compared with $2.3-million or 34 cents the year before. Revenue edged up 6% to $22.7 million from $21.4-million the year before. Sales benefited from the addition of four new stores, as well as a 2% increase in same store sales. The bigger loss was attributed to overheads at four of the chain’s ‘Power-Centre’ stores, plus expansion costs at five shopping-mall outlets.
