RVI unit Filene’s Basement shows spark

By Staff -- Home Textiles Today, 6/12/2008 2:08:00 PM

Columbus, Ohio – First-quarter sales at off-price chain Filene’s Basement were off 8.1% to $100.0 million – but comps were shaved just 0.2% – compared to a 5.4% comp drop at DSW, the larger division at Retail Ventures Inc. (RVI).

Overall income from continuing operations of $32.8 million was far above the $13.1 million recorded one year ago for the company – which since that time has shed the loss-burdened Value City discount chain.

Net income of $29.2 million was on an entirely different scale from year-ago income of $2.7 million.

Yesterday, while ticking off for analysts the better-performing merchandise categories at 36-unit Filene’s Basement, RVI president and ceo Heywood Wilansky mentioned various apparel and accessory products – but not home.

Jim McGrady, cfo, told analysts he expects margins to improve at Filene’s Basement this year, and noted that the chain is adding one or two new locations each year, while it continuing its store upgrade program across the rest of the chain. With this momentum, Wilansky said Filene’s Basement could do “in the neighborhood of $540 million” during the current fiscal year. Filene’s Basement logged sales of $466.3 million in the last fiscal year, ended Feb. 2, 2008.