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L.A. Gear's Fourth-Quarter Loss Widens

February 10, 1996|From Bloomberg Business News

L.A. Gear Inc. said Friday that its fiscal fourth-quarter loss widened as sales fell by more than a third.

The athletic shoe manufacturer's loss from operations widened to $23.6 million, or $1.12 a share, in the quarter ended Nov. 30, from $14.9 million, or 73 cents, a year ago.

Charges of $5.1 million, or 22 cents a share, for the September reorganization that included the firing of 160 employees, store closings and headquarters consolidation, $4.6 million, or 20 cents, for an increase in the reserve for barter credits and $1 million, or 4 cents, for writing off goodwill from the acquisition of its Mexican business in June 1994 resulted in a final loss for the most-recent quarter of $34.3 million, or $1.58.

The per-share results reflect the payment of preferred stock dividends.

Revenue fell 36% to $53.8 million from $84.7 million. For the full year, U.S. sales fell 35% on lower sales of lighted shoes for children, as well as an overall drop in sales volume of footwear and the average selling price, the company said.

International sales, which account for 35% of its total sales, fell 12% for the year, primarily in Mexico, Central and South America and Poland. Those were offset partially by sales gains in Europe and the Far East.

Shares in Santa Monica-based L.A. Gear closed down 12.5 cents at $2.125 on the New York Stock Exchange.

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