The company will open a total of 20 new stores for the year, with 11 to open in the second half. But growth will come in its new, 5,500-square-foot prototype (vs. its current 7,200-square-foot store), which should allow it to join better centers, said John D. Goodman, chief executive officer.
"We plan to add A malls where historically would not have been because of our store size," he said. Currently, just 15% of the company's 496 stores are in A malls.
Outlet expansion also is planned, with the company developing a new strategy to be announced in the first quarter of 2010. The company currently has 47 outlets and says it has opportunities to open an addition 60 stores.
The retailer continues to negotiate with landlords, among them General Growth Properties, which filed for Chapter 11 bankruptcy protection on April 15."We wish them well," Goodman said. "We've been good partners with them and hope they get through this."
Second quarter net sales were $191.2 million up 3.3% from the same quarter of 2009. Comparable store sales decreased 8.0%. The company posted a net loss of $0.8 million.
For the first half, net sales were $431.9 million, compared to $423.3 million in the year-ago period. Comparable store sales decreased 8.6%. The company reported a net loss of $3.7 million, compared to net income of $18.2 million a year earlier.
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