X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NAPERVILLE, IL-During the party supplier’s third quarter ended Oct. 29, Factory Card & Party Outlet’s net sales increased 4.7% to $56.2 million compared with $53.7 million during the same period last year. However, the company’s net loss for the quarter totaled $1.2 million, or 39 cents per diluted share, and its net income for the quarter came in at a mere $472,000, or 14 cents per diluted share. Comparable store net sales for the third quarter increased 1%.

According to Factory Card CEO Gary Rada, the company’s expectations for Halloween were higher than its actual results. “We made a substantial investment in store payroll and advertising with the anticipation of a larger and quicker ramp up to the Halloween season,” Rada said in a statement.

The company also said the quarter’s loss could be attributed to $670,000 in pre-tax charges for the litigation settlement with Midwest One Distribution Co., the write-down of assets related to underperforming stores and a greeting card inventory write-down related to the transition of that program.

Rada explained that while the company is disappointed in the quarterly results, management and its board of directors remain committed to improving future financials. The company has taken steps to improve its future, including a newly installed an inventory replenishment system, the revamping its greeting card category, and the launch of an e-commerce website.

The company’s board of directors has also set a return goal of 13.5% on invested capital by the end of 2008. To achieve that goal, Rada said Factory Card would substantially lower inventory and improve its supply logistics. At end of the quarter, Factory Card operated 189 company-owned retail stores in 20 states.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.