Harry And David Declares Fiscal Loss

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MEDFORD (GaeaTimes.com)- The famous American gourmet food company Harry and David on Friday announced that it has suffered a net loss of $39.2 million during the fourth quarter of fiscal budget 2010. The loss has increased over a year as in fiscal 2009, Harry and David mentioned a net loss of $20.2 million. The company also added that its net sale has lowered by 12.8% this year. The fiscal year of Harry and David ended on June 26. However, the picture of the company is not so grim as reduction in inventories and cost-cutting is expected to put the company in a better place for the coming year.

The CEO of Harry and David, Steven Heyer said to media sources that although the company registered a decline in sale, it was able to return to positive operating cash flow by improving the “management of working capital and reducing controllable operating expenses”. He held that both these things have been found effective in checking the effect of lower sale. Steven Heyer held that throughout the fiscal 2010 the company had to face the “challenging retail environment”. It is the slow recovery of economy and the cautious spending by the consumers which according to him led to the poor sale record.

However, the lower sale has in no way affected Harry and David’s expansion plans and the CEO held that more new stores are lined to come up by the end of this year in Manhattan. Chief Financial Officer of Harry and David, Ed Dunlap said to media sources that the cash position of the company is much stronger now. He mentioned that the way the company is operating at present chances are there that the coming fiscal will prove beneficial.