The North Face reports huge financial losses
The North Face, Carbondale-based designer and distributor of outdoor equipment and clothing, announced it lost $10.7 million for the third quarter of 1999, ending Sept. 30.
Also during the third quarter, Geoffrey D. Lurie was appointed chief executive officer. Lurie has 30 years management and operational experience in the retail, apparel and consumer products industries.
Lurie was previously a principal partner at GDL Management Services, a New York-based turnaround and restructuring firm.
The third-quarter loss amounts to $.84 per share. In the same period of 1998, North Face reported a profit of $7.2 million. The company’s net loss for the nine months ending in September amounted to $23.8 million.
Third-quarter sales declined 24.2 percent to $71.0 million, compared to $93.6 million for the third quarter of 1998.
During the third quarter the company began distributing its products through a contract distributor in Lanexa, Kan., after closing its own distribution center in Vacaville, Calif. North Face blames a decrease in wholesale revenues primarily on staffing difficulties and other problems at the new distribution center.
Sales at The North Face’s own retail stores were up 22.7 percent over last year’s third quarter.
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