Tween Brands Reports Profit Drop in 3Q

New Albany, Ohio Tween Brands said it lost $0.8 million in its third quarter ended Nov. 1, compared with a profit of $13 million a year earlier.

The loss took into account an $11.5 million restructuring charge related to the company’s move to convert about 560 of its 587 Limited Too stores to its Justice nameplate.

Tween Brands told shareholders earlier it expected that job cuts, the removal of Limited Too signs and costs related to closing 26 stores not being converted to Justice would lead to an $18 million charge in the second half. Justice after the conversion will have more than 900 shops, up from 310 before the move.

The company said its revenue fell 2.5% to $254.3 million from $260.9 million a year ago, while same-store sales fell 11%. Limited Too operations saw a 13% same-store sales decline while same-store sales for Justice were off 4%.

That was the first decline in Justice’s nearly half-decade existence, but CEO Michael Rayden said the company continues to count on the chain to help Tween Brands “proceed from a position of strength when the storm clears.”