Wilsons cuts losses in Q3
Specialty leather retailer Wilsons the Leather experts has announced a net loss of $8.5 million for the third quarter of the financial year 2004, however, this was an improvement on the same period in 2003 when the company reported losses of $11.6 million. Whilst comparable store sales results for the quarter brought positive news, increasing by 7.2%, net sales for the period dropped 10.2% to $87.9 million compared with $97.9 million in 2003.
For the first nine months of the year sales at the company decreased 4.7% to $241.0 million compared with $252.9 million last year. The year-to-date net loss was reported at $65.7 million compared with $46.0 million in 2003.
Despite the company’s results, Wilsons CEO Joel Waller remains positive, focusing on the increased comparable store sales produced for the quarter. He said: “We are pleased with our results during the third quarter. Sales in both our mall-based and outlet stores were strong during the quarter and we are encouraged by the performance of our new fall merchandise. Our margin rates for both the quarter and the year are ahead of last year and give us confidence that the structural changes we have made in the business are taking hold,” referring to the closure of 111 unprofitable retail outlets that have been closed.
