10/31/12

The web declines for Frederick’s in fiscal 2012

The Internet now accounts for about 90% of all direct sales.

It was a tough fiscal 2012 overall and online for intimate apparel retailer Frederick’s of Hollywood Inc.

For the year ended Sept. 28, Frederick’s, No. 321 in the 2012 Internet Retailer Top 500 reported:

• The web now accounts for about 90% of total direct sales. Based on that percentage Internet Retailer calculates web sales declined year over year 9.8% to $32.2 million from $35.7 million.
• Total sales declined 6.9% to $111.4 million from $119.6 million in fiscal 2011.
• Direct sales declined year over year 9.8% to $35.8 million from $39.7 million.
• Store sales decreased 1.9% to $70.8 million from $72.2 million.
• Comparable-store sales increased 0.5%.
• Net loss was $6.4 million compared with $12 million in fiscal 2011.

The web accounted for 28.9% of total sales in fiscal 2012 compared with 29.8% in fiscal 2011.

Though the retailer didn’t provide any detail, Frederick’s of Hollywood redesigned its e-commerce and mobile site in fiscal 2012. Frederick’s says it put more resources into developing Harriett.com, which features private-label merchandise, and TheFindbyFredericks.com, a site that sells discount and clearance products.

For the fourth quarter Frederick’s didn’t break out web metrics but did report:

• Direct sales decreased about 21.5% to $6.2 million from $7.9 million in the fourth quarter of fiscal 2011.
• Total sales declined 21.3% to $20.3 million from $25.8 million.
• Net loss was about $3.9 million compared with $7.2 million in Q4 of fiscal 2011.

“While there is no question that executing our turnaround strategy has been challenging, we have steadily reduced operating losses and believe that we are on a path toward achieving long-term profitability,” says CEO Thomas Lynch.