Gadzooks Reports December Sales Results
08 January 2004 - 11:58PM
PR Newswire (US)
Gadzooks Reports December Sales Results Company to Close Up to 35
Under Performing Gadzooks Stores and Four Orchid Stores DALLAS,
Jan. 8 /PRNewswire-FirstCall/ -- Gadzooks, Inc. today announced
that sales for the five weeks of fiscal December ended January 3,
2004 decreased 27.7 percent to $40.5 million from $56.0 million for
fiscal December 2002. For the December period, the Company's sixth
month as a female-only concept, comparable store sales decreased
25.2 percent compared to a 2.4 percent decrease for fiscal December
of 2002. For the first 48 weeks of fiscal 2003, total sales
decreased 20.5 percent to $245.4 million from $308.6 million for
the comparable period of fiscal 2002. Comparable store sales have
declined 19.3 percent for the first 48 weeks of fiscal 2003, versus
a 3.2 percent decrease for the first 48 weeks of fiscal 2002. The
Company also reported that it has decided to discontinue testing
the Orchid concept and expects to close the four stores as soon as
possible. Chairman and CEO Jerry Szczepanski remarked: "After two
full years of evaluation, Orchid, an innerwear and sleepwear store
for teens, has been unable to achieve the level of sales necessary
for us to consider rolling out additional stores. We have
determined that the most appropriate course of action at this time
is to close the four stores and focus our complete attention on the
Gadzooks chain." In addition, the Company expects to close up to 35
under performing Gadzooks stores pursuant to lease expirations or
kick out clauses by the end of April 2004. Of the 35 stores, the
Company expects to close four by January 31, 2004, the end of the
Company's fiscal year. "We do not like to close stores, but the
closing stores are not generating adequate sales to provide a
satisfactory return on investment," continued Mr. Szczepanski. "We
will continue to evaluate our options regarding other under
performing store locations." For further details, please call
972-662-4201 to listen to Gadzooks' monthly sales commentary.
Dallas-based Gadzooks is a specialty retailer of casual clothing,
accessories and shoes for 16-22 year-old females. Prior to July
2003, the Company offered clothing, accessories and shoes for both
males and females. Gadzooks currently operates 411 Gadzooks stores
in 41 states. This material includes "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements include estimates, targets,
plans, expectations, opinions, forecasts, projections, guidance or
other statements that are not statements of fact. Although the
Company believes that the expectations reflected in such forward-
looking statements are reasonable, it can give no assurance that
such expectations will prove to have been correct. There are many
factors that could cause forward-looking statements not to be
correct, including the cautionary statements contained in this
material and risks and uncertainties inherent in the Company's
business set forth in the filings of the Company with the
Securities and Exchange Commission, including without limitation
the Company's most recent Annual Report on Form 10-K, the
registration statement filed on Form S-3 in October 2003 and the
quarterly report filed on Form 10-Q for the Company's fiscal
quarter ended November 1, 2003. The Company does not undertake any
obligation to update any forward-looking statements contained in
this material. DATASOURCE: Gadzooks, Inc. CONTACT: Jim Motley, VP,
CFO of Gadzooks, Inc., +1-972-307-5555 Web site:
http://www.gadzooks.com/
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