AL-based Just For Feet (JFF) announced yesterday that
it had consolidated net sales of $225.8M during the second
quarter ended July 31, a 29% increase over net sales of
$175.3M during the same period last year. For the six
months ended July 31, JFF sales were up 36%, to $446.7M,
from sales of $327.2M during the first six months in '98.
But the company reported a net loss of $25.9M, or $.83 per
share, for the second quarter, compared to a profit of
almost $8M, or $.25 per share, in the same period last year.
JFF President & CEO Helen Rockey blamed the losses on an
"aggressive inventory liquidation effort [that] negatively
impacted sales, gross margins and store operating expenses"
in the quarter (JFF). CNBC's Ted David reported that JFF's
second quarter loss was "even worse than the $.73 loss the
Street was looking for" (CNBC, 8/24). The MOTLEY FOOL's
Dave Marino-Nachison wrote that while the company "has stood
behind" its superstore division all year, its specialty
stores, which account for 174 of 322 total, "have been
fumbling." Nachison added that observers believe JFF "may
eventually spike the specialty store division," but until
then, "profitability seems a ways away" (MOTLEY FOOL, 8/24).
