Harry & David Trims Loss In Third Quarter
Harry & David Holdings Inc. reported third-quarter sales of $74.9 million, up from $68.3 million during its 2007 third quarter.
The company attributed the year-over-year increase to its acquisition of the Cushman’s Fruit Company business, a timing shift in Fruit-of-the-Month Club product shipments into the third fiscal quarter this year from the second fiscal quarter last year, and higher sales from its Wolferman’s direct marketing brand.
These results were partially offset by lower sales within the flagship Harry & David brand, which were the result of increased markdowns and discounts and, to a lesser extent, the shift of Easter sales into the fourth fiscal quarter of the current year.
The company trimmed its net loss from $27.5 million a year ago to $26.1 million. It did so in part by trimming its cost of goods from 71.1% of merchandise sold to 69.7%, and selling, general and administrative expenses from 68.8% to 64.8%.
