Retail Ventures on Rocky Road
By Staff -- Home Textiles Today, 6/13/2005 12:00:00 AM
Columbus, Ohio —
Retail Ventures — parent company of Value City, Filene's Basement and DSW Show Warehouse — posted a sharply wider loss for the first quarter as costs rose, margins softened and same-store sales declined decisively.
Total sales for the quarter ended April 30 rose 5.2 percent to $680 million. But the company posted a net loss of $11.5 million, versus a loss of $1.9 million in last year's quarter. Diluted loss per share tumbled to 32 cents compared to a loss of 6 cents during the year-ago period.
Comps at Value City declined 7.9 percent on top of a 1.1 percent decline last year. Comps at Filene's Basement rose slightly, up 2.0 percent, against the tough comparison of a 15.2 percent gain last year. Comps at DSW were up 4.4 percent compared with 11 percent a year ago.
SG&A expenses grew to 41.1 percent of sales, or $279.3 million, compared to 39.4 percent, or $254.6 million a year ago. Average gross margin fell to 39.5 percent from 40.1 percent.
Retail Ventures Inc.
|Qtr. 4/30 (x000)||2005||2004||% change|
Retail Ventures restated its consolidated balance sheet and statement of operatings for the quarter ended May 1, 2004, to correct errors in accounting for two types of leasing transactions. The company also realigned its business segments at the start of fiscal 2005, moving the Filene's Basement shoe business into the DSW segment.
|Operating income (EBIT)||(10,950)||4,827||—|
|Per share (diluted)||(0.32)||(0.06)||—|
|Average gross margin||39.5||40.1||—|
1st Quarter Same-Store Sales by Segment
|Value City Department Stores||-7.9%||-1.1|
|DSW Shoe Warehouse||4.4||11.0|
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