THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Saturday, August 10, 1996 TAG: 9608100244
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: STAFF AND WIRE REPORT
DATELINE: RICHMOND LENGTH: 34 lines
Best Products Co. Inc. reported a 26.9 percent decrease in overall sales for July, sending the struggling retail chain's stock prices to an all-time low.
Best stock dropped below $1 on Nasdaq for the first time Thursday, closing at 93.75 cents in heavy trading, down 21 cents from Wednesday's close. It closed unchanged on Friday.
Sales at stores open for at least a year fell by 28.6 percent last month as the chain converted from a catalog showroom retailer to a specialty discounter, officials said Tuesday.
Company officials said they expected the decrease because of poor merchandising and weak marketing decisions earlier this year.
The company earlier this year announced plans to close a total of 10 of its catalog showrooms in Virginia, Texas, Ohio, North Carolina and Maryland, and cancel nine new stores it had planned to open in the next two years.
Best did not plan on closing any of its stores in South Hampton Roads. The retailer has three traditional outlets and one jewelry store in the region.
The Richmond-based company reported losses of $95.7 million for 1995, leading many analysts to question its viability.
Best's chairman and chief executive officer, Daniel H. Levy, said the company is changing its format and strengthening its marketing program. He said July's performance was in line with expectations and that the profit margin rate improved, increasing 1.5 percent.
``When coupled with our previously announced $40 million in expense reductions, we anticipate improved performance during the second half, particularly during the fourth quarter,'' Levy said. by CNB