Barneys Says It's Happy

Barneys New York Inc. has announced a 4.2 percent decrease in net sales for the second quarter ending Aug. 3, 2002. Same-store sales declined 4.1 percent.

For the first six months of its fiscal year, net sales were down 2.9 percent and same- store sales down 2.6 percent.

Nonetheless, Howard Socol, chairman, president and ceo of the fashion retailer, hailed “a very good performance in the midst of a retail environment that continues to challenge our top line sales.”

“I am very pleased with the professionalism and efforts of the entire organization for significantly improving our operating results for the spring season,” he said. “Reduced markdowns, improvements in shortage and leveraging of our overhead costs continue to reflect the company's focus on controlling both its inventory levels and its expenses.” He cited, in particular, the company's 48 percent increase in earnings before interest, taxes, depreciation and amortization (EBITDA).

“The bright spots in the season,” Socol noted, “were women's co-op, developing designer ready-to-wear, jewelry and cosmetics. While sales of men's clothing remained soft, both men's shirts and accessories were solid performers.”

Socol expressed enthusiasm for the fall season, saying that inventories were in good shape and that the space reconfigurations at the Madison Avenue flagship store were nearing completion.

Barneys New York operates flagship stores in New York, Beverly Hills and Chicago, plus five regional full-price stores, 12 outlet stores and two semi-annual warehouse sale events. It underwent a celebrated journey into and back out of bankruptcy in the 1990s.

The retailer's celebrated creative director, Simon Doonan, will be a keynote speaker at VM+SD's second annual International Retail Design Conference, Sept. 18-20, 2002, in Pasadena, Calif. See www.irdconline for more details.