Hollywood, CA (CNS) – Specialty Fashion Group, which owns 813 women’s fashion stores, recently posted a full year profit 28 percent lower than the last time it was calculated.
The company owns stores like Katies and Millers Fashion Club, Go-Lo and Crazy Clark’s. The group says profits for the 2007-2008 year came in at $23 million. This is a huge fall after 2006-2007’s $32 million, according to Smh.com.au.
In addition, things seem to be getting worse. During the second half of the financial year, the company’s profits plummeted to a mere $3.5 million. The company earned $19.5 million during the first half.
Chief executive Gary Perlstein said June was the worst month in nearly a decade, with stores practically empty.
Perlstein added that perhaps the decline in sales means that women are becoming more discerning about the quality of clothes they buy.
“If you buy something, you want to make sure that it’s going to last,” he said, adding, “We are finding we are having less difficulty selling our highest-priced items in store than our lower-priced items.”