Movie Star Inc announced financial results for its fiscal 2008 first quarter ended September 30, 2007.
For the fiscal 2008 first quarter, net sales decreased to $11,939,000 from $18,690,000 in the same period last year. Gross margin, as a percentage of sales, was 28.2% for the fiscal 2008 first quarter compared with 31.2% in the fiscal 2007 first quarter.
Selling, general and administrative expenses were $4,502,000, compared to $4,487,000 in the fiscal 2007 first quarter. Movie Star incurred $358,000 in merger-related fees for the fiscal 2008 first quarter, compared to $539,000 in merger-related fees for the same fiscal 2007 period, related to the previously announced merger of Fred Merger Corp, a wholly-owned subsidiary of Movie Star, into FOH Holdings Inc. (“FOH Holdings”), the parent company of Frederick's of Hollywood Inc.
For the fiscal 2008 first quarter, Movie Star reported a net loss of $966,000, or a loss of $0.06 per share, compared to net income of $366,000, or income of $0.02 per diluted share, for the first quarter of fiscal 2007.
Mel Knigin, President and Chief Executive Officer, stated, “We are optimistic about fiscal 2008 in spite of the softness in sales that we experienced in the first fiscal quarter.
Part of the decrease in sales was due to the timing of an order of approximately $2,000,000 that we were able to ship in the fiscal 2007 fourth quarter instead of in the fiscal 2008 first quarter.
Our backlog of open orders to be shipped was $30,489,000 at September 30, 2007, compared to $33,159,000 at September 30, 2006.
marketing@alchempro.com
