Upscale specialty apparel chain Harold’s Stores reported net earnings losses and lower sales for both the second quarter and first half of 2006. But those shadows were lightened by increased sales through the company’s catalog and Internet channels.
Harold’s posted a net loss of $5 million for the quarter, compared to a $2.9 million net loss at the same time last year. For the first half of the year, the company showed a net loss of $6 million, against a $2.1 million for the first six months of 2005.
Those losses followed sales reductions at the Dallas-based chain. Quarterly sales were $19.3 million, down 3% from $20.3 million year-over-year. And year-to-date sales were off 8.8% at $40.4 million, compared to $44.3 million for the first six months of 2005.
But direct sales from catalogs and the Internet made up $1.2 million of Harold’s overall sales for the second quarter, nearly twice the $670,000 in sales that came through the same channels in Q2 2005. For the first half of the year, the company saw direct sales of $2.4 million, up 47% from the previous year.
Harold’s currently operates 42 specialty stores in 19 states, including both full-line and outlet stores. Its Houston locations go under the “Harold Powell” name.
