Goody's Family Clothing, Inc. reported total sales of $94.3 million for the fiscal month of September 2004, a decrease of 4.7% from total sales of $98.9 million for the fiscal month of September 2003. Comparable store sales for September 2004 decreased 9.1% from September 2003.
Total sales for the first eight months of fiscal 2004 increased 3.0% to $785.9 million from $763.1 million during the same period last year. Comparable store sales for the first eight months of fiscal 2004 decreased 0.1% from the same period last year.
Robert M. Goodfriend, Chairman and Chief Executive Officer, commented, “The month of September 2004 began with a comparable store sales increase of 6.3% through the Labor Day holiday over the same period of the prior year. However, the Company experienced significant sales decreases throughout the month caused in part by the effects of three major hurricanes which impacted approximately 240 stores. We estimate that these storms accounted for approximately one-third of the comparable stores sales decline for the month of September 2004. In addition, we believe that warm weather, which prevailed in our markets during the last week of September 2004, accounted for most of the balance of the comparable stores sales decrease for September 2004 when compared with the unusually cool weather in the last week of September 2003.”
Goody's had previously announced that its business plan called for comparable store sales to increase in the mid single digits for fiscal 2004. Although the Company continues to plan a comparable store sales increase for the remainder of fiscal 2004, it now believes comparable store sales for the full fiscal year will be in the low single digits. In addition, with lower comparable store sales, the Company now expects that its selling, general and administrative expense rate for fiscal 2004 will approximate that of fiscal 2003, rather than the modest decrease previously announced.
The company will open a new store in Danville, Illinois on Thursday and hold the grand opening for a relocated store in Murphy, North Carolina. On October 21, 2004, the Company plans to open a new store in Ottawa, Kansas. The Company plans to open seven new stores in the fourth quarter of fiscal 2004, resulting in 24 new stores for fiscal 2004.
