Tween Brands Reports $13M Loss in Q4

New Albany, Ohio Tween Brands reported Wednesday a $13.9 million loss for the fourth quarter, ended Jan. 31, compared to earnings of $25.0 million for the same period last year. The teen-apparel retailer blames the decline on a large restructuring change earlier this year.

For the quarter, net sales declined 16% to $265.9 million, compared to $316.1 million for the fourth quarter 2007.

Tween Brands reported net sales for fiscal 2008 declined 2% to $995.1 million, compared to 2007. The retailer reported that this loss was driven by a 12% decline in same-store sales. These factors impacted an overall fiscal-year loss of $17.1 million, compared to earnings of $52.6 million last year.

“The fourth quarter and full year of 2008 were the most difficult in our company’s history,” said Michael Rayden, Tween Brands chairman and CEO. “Worsening economic conditions impacted our premium-priced Limited Too brand in particular, and when we made a conscious decision to move units, we became highly promotional at the Limited Too stores.”

Tween Brands plans to eliminate 85 jobs, which will impact 49 employees, according to a company statement. These reductions are in addition to the company’s August announcement to cut 150 positions as it converted Limited Too stores into its Justice concept.

The company expects the additional job reductions to account for a $7 million cost savings. This does not include approximately $1.4 million in severance expenses.