Filene's Stars in Retail Ventures Results
June 18, 2007,
Tri-platform off-price retailer Retail Ventures (RVI) reported a 4.5% rise in first quarter sales to $754.1 million, largely on store-count increase, while comp store sales fell 5.2% — but one division posted positive comps: Filene's Basement.
Filene's Basement comps were up 1.6% and the company said the boost would be 2.6% if the under-renovation flagship were excluded from results.
Comps at DSW, the 230-unit off-price shoe superstore, were down 3.6%, but the chain is providing ample growth at a 30-stores-per-year clip. Value City Department Stores, the 113-door discount chain, saw comps fall 8.7%; this low-end division is considered to be up for sale.
Wilansky and cfo Jim McGrady deflected a range of analyst questions about the ultimate disposal of Value City, for which the company has been engaged in strategic evaluation since December 2006. The discount chain accounted for 38.2% of company sales in the first quarter, down from 44.4% for all of fiscal 2006. Sales were down in all merchandise categories, the company said.
RVI earnings for the quarter amounted to $2.7 million, due in large part to non-cash accounting income of $12.5 million, McGrady said.