Total Sales (in millions) Percent Change Total Comparable Fiscal period 2008 2007 Sales Store Sales December (5 weeks) $178.0 $196.3 (9.3)% (8.5)% Quarter to date (9 weeks) $296.8 $336.4 (11.8)% (10.9)% Year to date (48 weeks) $1,259.4 $1,376.6 (8.5)% (10.6)%
During December, ladies' social and dresses had the best sales
performance, followed closely by ladies' casual sportswear, ladies'
accessories and men's furnishings. The most difficult businesses were gifts
and linens. In general, sales were better than trend west of the Mississippi
River, but continued to be weak in the Southeast, especially
"As expected, it was a very challenging Christmas selling season, although
our sales trend improved somewhat just prior to and following the actual
Christmas holiday," commented
At
Expense reductions
As a result of the continued sales declines and the uncertainty of future
business trends, a number of additional expense reduction actions will be
effective immediately. These include reducing the number of assistant
managers in most
These initiatives should help align selling, general and administrative
(SG&A) expenses with the Company's reduced revenues, and are in addition to
earlier, already-announced reductions in management headcount, associate
workforce hours and renegotiated contracts for non-merchandise procurement.
Today's announcement and the earlier actions together should result in savings
of
"These decisions, while difficult, underscore our philosophy to be fiscally conservative in a volatile economic climate," noted Stovall. "Coupled with the Company's decisions to reduce capital expenditures and conserve cash, these expense reductions will enable us to compete in the current economic environment."
About
SAFE HARBOR STATEMENT>>>>>>>Except for historical information contained
herein, the statements in this release may be forward-looking, and are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. The Company does not assume any obligation to update or
revise any forward-looking statements even if experience or future changes
make it clear that projected results expressed or implied will not be
realized. Forward-looking statements involve known and unknown risks and
uncertainties that may cause
-- changes in consumer spending due to general economic conditions including uncertainty in the financial and credit markets -- the effectiveness of advertising, marketing and promotional strategies -- on-going competition from other retailers -- changing preferences in apparel -- unanticipated weather conditions and unseasonable weather -- adequate sources of merchandise at acceptable prices -- availability of new store sites at acceptable lease terms -- the Company's ability to attract and retain qualified employees to support planned growth -- ability to successfully implement strategies to exit or improve under- performing stores -- disruption of the Company's distribution system -- acts of terrorism
and the other risks and uncertainties described in the Company's filings with the Securities and Exchange Commission.
SMRT-S
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