NEW YORK — Slipping sales and higher costs deflated third-quarter results for Harold’s Stores Inc.
The Dallas-based upscale specialty retailer saw earnings plunge 56.8 percent to $272,000, or 4 cents a diluted share, for the three months ended Oct. 30. Comparatively, the company reported earnings of $629,000, or 6 cents, in the same period a year ago. Results included consideration for preferred stock dividends and the accretion of preferred stock issuance, hampering the bottom line by $377,000.
Sales at the company’s 41 retail locations slid 3.2 percent to $23.1 million from $23.9 million. Comparable-store sales declined 4.7 percent.
“The company’s merchandise clearance strategies accelerated more early fall merchandise markdowns into the third quarter, resulting in lower reported gross margin for the quarter,” said Hugh Mullins, president and chief executive officer, in a statement.
You May Also Like
Cost of goods sold increased 180 basis points to 63.7 percent of sales, or $14.7 million, compared with 61.9 percent of sales, or $14.8 million, in the year-ago period.
With hefty charges related to store closings behind it, the company significantly narrowed losses for the nine months to date. The company reported a loss of $924,000, or 15 cents a share, compared with a loss of $4.4 million, or 72 cents, in the same period a year ago.
Sales fell 2.3 percent to $66.6 million from $68.1 million.