Printer Friendly

CLOTHESTIME OUTLINES STRATEGY FOR ROSY RETAIL FUTURE

 CLOTHESTIME OUTLINES STRATEGY FOR ROSY RETAIL FUTURE
 NEW YORK, June 4 /PRNewswire/ -- The combination of Clothestime's


(NASDAQ: CTME) buying power and low cost structure will allow the leading women's retail chain to step up store expansion and continue to realize sales increases, announced President and Chief Operating Officer Norman Abramson today in an address to the financial community at PaineWebber's High Growth Stock Conference.
 Abramson believes Clothestime's value-priced approach will remain an unbeatable formula in both a recessionary and conservative spending environment, propelling the company to its goal of becoming a 1,000-store chain between 1998 and 2000.
 Clothestime was one of a select group of high-growth companies chosen to attend the conference. The company recently reported 19 consecutive months of comparable store sales increases. Using internally generated funds, Clothestime has opened 35 new stores to date this year and plans to open another 30, bringing the company total to approximately 466 by fiscal year end.
 According to Abramson, total sales and other income in fiscal 1991 were approximately $260 million, an increase of 24 percent over fiscal 1990. The company also reported a significant increase in net profits for fiscal 1991 of $5.5 million, compared with a marginal profit in 1990.
 In April, the company saw its best first quarter earnings since 1987. Net income for the first quarter ended April 25, 1992, was $1.0 million, a 94 percent increase over last year's net income of $522,000. Clothestime's sales for the quarter were $68.3 million, a 20 percent increase over $56.8 million for the same period last year. Comparable stores sales for the quarter increased 11 percent. Earnings per share were $0.07 compared with $0.04 for the same period last year.
 Abramson pointed to Clothestime's five-point strategy for success as the reason behind the company's strong performance:
 1) Penetration and Remodeling. Clothestime plans to open approximately 65 new stores during 1992 and 75 locations in 1993. Next year, Clothestime also will investigate the feasibility of opening stores in the New York City tri-state area. In addition, Clothestime has instituted an aggressive remodeling program. Clothestime plans to remodel approximately 60 stores during 1992 to enhance the shopping environment, increase customer satisfaction and improve existing stores' competitive position.
 2) Placing a renewed focus on selling only quality sportswear, dresses and accessories for fashion-conscious junior-sized women. "Because of our size and buying clout, we are able to command strong vendor attention and can purchase in-season apparel and accessories at attractive prices. To continue to cater to our comparative-shopper customers, our prices will remain at the same level as 1991, which is at least 15 percent below our 1990 prices," Abramson said.
 3) Low overhead. Clothestime locates stores in low-cost, high- traffic strip centers, as opposed to higher-priced shopping malls.
 4) An enhanced management team. Clothestime has recruited key management people with proven expertise in the retailing industry.
 5) A refined marketing strategy. Clothestime's marketing has been expanded to include not only television advertising, but also radio and in-store promotions, increasing marketing coverage across all store locations.
 Other goals Abramson discussed included utilizing technology to remain competitive, expanding the company's distribution facility, improving the sourcing of merchandise and maintaining a strong balance sheet.
 "This year, Clothestime will complete a two-year migration to a brand new merchandising and financial software systems along with an updated P.O.S. system," Abramson said. "In April of 1992, we were the first company on the West Coast to upgrade our central computer to the state-of-the-art IBM system AS400 Model E 90."
 Clothestime's strong balance sheet will allow the company to grow using internally generated funds. "Clothestime has approximately $30 million in cash, $30 million in unsecured and unused lines of credit and no long-term debt," Abramson said.
 From its humble beginning in 1974 as a single store in Orange, Calif., The Clothestime Inc. now operates 436 women's apparel stores in 18 states, offering primarily in-season, moderately priced sportswear, dresses and accessories, emphasizing brand names at a substantial discount from the more up-scale department and specialty stores. The Clothestime Inc.'s common stock is traded over the counter under the NASDAQ symbol "CTME."
 -0- 6/4/92
 /CONTACT: Jennifer Sims of Gloria Zigner & Associates, 800-669-4599, for The Clothestime Inc./
 (CTME) CO: The Clothestime Inc. ST: California IN: REA SU:


CH-EH -- LA009 -- 6833 06/04/92 07:00 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 4, 1992
Words:727
Previous Article:SEVEN PLUS SEVEN BOEING 777s FOR EMIRATES
Next Article:TOLEDO PUBLIC SCHOOLS PURCHASES $500,000 IN WICAT EDUCATIONAL TECHNOLOGY
Topics:


Related Articles
THE CLOTHESTIME INC. ROLLS OUT 1992 EXPANSION PLANS
CLOTHESTIME OPENS FOUR FLORIDA STORES
CLOTHESTIME OPENS SEVEN TEXAS STORES
CLOTHESTIME OPENS THREE ATLANTA STORES
CLOTHESTIME OPENS SEVEN SOUTHERN CALIFORNIA STORES
CLOTHESTIME TO OPEN FOLSOM STORE
CLOTHESTIME OPENS THREE NEW LOCATIONS IN ARIZONA
CLOTHESTIME OPENS NEW CHICAGO LOCATION
CLOTHESTIME ANNOUNCES 12 STORE OPENINGS
CLOTHESTIME OPENS NEW SAN DIEGO STORE

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters