follow us

Value City records 1Q loss of $7.8M

Don Hogsett, Jeff Linville -- Home Textiles Today, June 15, 2001

COLUMBUS, OH — With same-store sales dropping off and costs and interest expense both headed sharply higher, Value City Department Stores recorded a first-quarter loss of $7.8 million.

Sales climbed higher by 14.7 percent, to $530.1 million from $462.1 million last year, getting a big lift from last year's acquisition of Filene's Basement Stores. But same-store sales declined by 3.9 percent, up against a year-ago gain of 6.5 percent.

Putting earnings under pressure, costs climbed higher by 160 basis points, to 39.3 percent from 37.7 percent a year ago. Measured in absolute dollars, costs shot up by 19.7 percent, or $34.3 million.

Acting as a further drag on profits, interest expense shot by 57.6 percent, to $8.4 million from $5.4 million, costing the off-price retailer an extra $3.1 million. Driving the big increase in interest expense, long-term debt shot up by 46.1 percent, to $401.9 million from $275.1 million in the wake of the Filene's Basement buyout.

On the upside, the company's cash position improved to $48.8 million from $7.7 million last year, and inventories were whittled down by 14.6 percent, to $484.1 million from $566.7 million last year.

Value City is the nation's 31st largest retailer of home textiles products, with home fashions sales last year of $125 million.

Featured Video

  • Online Moves From Afterthought To Main Thought For Textiles Suppliers

    Camera Icon More Videos

Other Home Furnishings Sites

Casual Living
Gifts and Decorative Accessories
Home Accents Today
Kids Today
Furniture Today