Merry-Go-Round reports another month of poor sales

March 03, 1995|By a Sun Staff Writer

Merry-Go-Round Enterprises Inc., which has been in bankruptcy proceedings for more than a year, suffered another poor sales month in February but expects to attain its cash-flow targets for the month.

February revenue was $34.6 million -- 7 percent less than what was projected in the company's business plan. Average sales per store were 5 percent below those of February 1994, a month when Merry-Go-Round was operating hundreds of unprofitable locations that it since has closed.

Merry-Go-Round Chairman Thomas Shull blamed the February sales shortfall on January clearance promotions that he said left less apparel than planned on store shelves.

Merry-Go-Round did not compare revenue for stores operating in February with results from the same locations a year ago.

The company will be far from profitable for February. But because of cost-cutting, its bottom-line results are expected to meet projections for the first time since April 1994, Mr. Shull said.

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