Signs of a turnaround at Wilsons?
American retailer of leather outerwear and accessories Wilsons The Leather Experts Inc. continues to struggle and reported further declines for the third quarter ended November 3, as net sales decreased 10.3% to $57.8 million, down from $64.5 million for the same period last year, and the company posted a net loss of $18.5 million. Comparable store sales also slipped, falling 13.3%, although this was an improvement on the decrease of 15.5% reported in the same period last year.
Year-to-date sales decreased 15.6% to $159 million compared with $188.3 million for the same period last year, whilst comparable store sales decreased 15.8% compared with a decrease of 13.9% for the same period last year. Year-to-date net loss reached $69.2 million.
Michael Searles, chief executive, commented, "Our third quarter performance is reflective of our continuing transition to a brand driven strategy, as well as an unseasonably warm third quarter, which saw our apparel categories in the mall and outlet channels declining 25.5% in men's and 18.9% in women's. Branded
Product; however, continues to significantly outperform our expectations and reconfirms our belief that brands in both outerwear and accessories are our future. Accessory categories in our mall stores continued to see double-digit comparable store sales increases during the quarter."
However, as reported by www.leatherbiz.com on November 20, colder weather could see a turnaround in the company’s fortunes and results in the early weeks of November appear to back this opinion. Mr Searles stated, "As colder weather has arrived, the first two weeks of November have seen our mall and outlet channels move to positive comparable store sales."
