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Jennifer Convertibles Reports $6.4 Million Loss for Second Quarter
April 14,
2010 by in UnCategorized 
By Home Furnishings Business in Financial Reports on April 15, 2010
Woodbury, N.Y.-based Jennifer Convertibles (OTCBB: JENN) reported a net loss of $6.4 million during the second quarter ended Feb. 27, compared to a loss of $2.3 million for the same period last year.
Net sales for the quarter were about $23.9 million, compared to $21.4 million during the same quarter last year.
For the six-month period, the retailer posted a net loss of $13.3 million, compared to a loss of $4.2 million during the same period last year. Net sales for the first half of the year were $45.8 million, compared to $46.3 million in the first half of last year.
During the second quarter, Jennifer Convertibles closed four storestwo in New York, one in California and one in Arizona. Last year in the second quarter, the company closed two stores.
"During the quarter, we completed the operational takeover of the 20 Jennifer stores owned or affiliated and operated by the former Related Company," said Harley J. Greenfield, CEO. "Five of these stores were adjacent to our existing stores and are now operating as combined stores, which will create operational efficiencies. The results for the quarter were significantly impacted by the $3.5 million charge associated with the Related Company plus expenses associated with taking over the operation of the 20 stores."
Greenfield said despite the challenging time the retailer has had, he sees the company as being much stronger.
"The majority of the issues with the Related Company are now behind us," he said. "We should begin to see the operational efficiencies take hold late next quarter and would expect to see the positive results of these efforts in our fourth fiscal quarter. Our Ashley Furniture HomeStores division is growing rapidly both in revenue and profitability. The combination of these two factors make me optimistic about the future of Jennifer."
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