EDEN PRAIRIE, Minn.–Lenox narrowed its earnings loss but posted a 17 percent sales decrease in the first quarter.
The company reported a net loss of $9.1 million for the first quarter ended March 29, compared with a net loss of $13 million in the prior-year period. Sales totaled $71.4 million, compared with $86.4 million in the year-ago period.
The company attributed the drop in sales to lower inventory liquidation sales in the first quarter of this year, as well as to the general economic slowdown. Marc Pfefferle, interim chief executive officer, also noted a decline in the overall fine china and collectibles categories, as well as a continued contraction of the gift and specialty retail channels.
“While the weak economy is expected to continue to impact sales in 2008, the company’s strategy is to offset declining categories and channels through the introduction of innovative new products, licensing into new product categories and, where appropriate, better balance its sales by channel,” Pfefferle said in a statement.
