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ROUNDUP / BARBARA MURPHY

Right Start Restructure Reduces Quarterly Losses

September 29, 1998|BARBARA MURPHY

The Right Start in Westlake Village reported significantly smaller losses on reduced sales for the second quarter ended Aug. 1.

Sales for the quarter were $8.7 million compared with $9.9 million for the quarter ended Aug. 2, 1997. Included in this year's second-quarter results were retail sales of $7.7 million and catalog sales of $964,000, compared with retail sales of $8.1 million and catalog sales of $1.7 million last year.

For the quarter, the company incurred a net loss of just over $1 million or 11 cents per share, versus a loss of $1.9 million or 23 cents per share for the second quarter of 1997.

The company closed three stores during the quarter and eight stores during the last six months. As of Aug. 1, the company had 35 stores in operation, compared with 40 on Aug. 2, 1997.

"As we expected, our second-quarter results were significantly improved over those experienced last year," said Jerry R. Welch, chairman and chief executive officer. "Our overall sales were down due to the closing of eight stores and reductions in our catalog circulation. However, our losses narrowed considerably."

Part of the restructuring strategy was to close the company's poorly performing regional mall stores and open new stores in suburban street locations, Welch said.

The company expects to open eight new suburban locations before the end of the year in Chicago, Denver, San Francisco, Santa Barbara and Mission Viejo.

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