People’s Liberation Inc. reduced its fourth-quarter losses despite sales erosion related to a legal battle with Charlotte Russe Holding Inc.
For the three months ended Dec. 31, the loss attributable to holders of common stock was $1.2 million, or 4 cents a diluted share, compared with a loss of $2.6 million, or 7 cents, in the year-ago quarter.
Sales fell 10.1 percent to $7.1 million from $7.5 million. The company attributed the decline to its dispute with Charlotte Russe over an exclusive 2008 distribution agreement, which resulted in the firms suing each for breach of contract last October. The sales slide — People’s Liberation no longer ships to Charlotte Russe — came as wholesale and retail sales of the firm’s J. Lindeberg brand increased, the company said.
“We are working diligently to complete a portfolio of licensing opportunities in fragrance, footwear and accessories to continue our expansion with complementary products,” said Colin Dyne, chief executive officer.
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People’s Liberation signed a multiyear licensing agreement in December with Viva International Group for William Rast Eyewear and William Rast Racing Eyewear. In the fourth quarter, the company launched its retail expansion for the William Rast brand, opening two full-price stores — in Los Angeles and in San Jose, Calif., — and an outlet in Cabazon, Calif. The firm anticipates opening a new J. Lindeberg store in Miami this month. It already has locations in Los Angeles’ Beverly Center and in New York’s SoHo.
For the year, the loss attributable to common stockholders was $1.7 million, or 5 cents a share, versus a loss of $4.5 million, or 12 cents, in 2008. Sales rose 10.7 percent to $35.6 million from $32.2 million.