Net sales from physical stores were $92.8 million, a decline of $5.0 million or 5.1 per cent from $97.8 million last year. Comparable store net sales saw a decrease of 8.6 per cent. Net sales from physical stores accounted for 80.1 per cent of total net sales this year, up from 79.1 per cent last year. The company ended the first quarter with 246 stores, compared to 248 stores at the end of the first quarter last year.

E-commerce net sales were $23.0 million, a decrease of $2.8 million or 10.8 per cent from $25.8 million last year. E-commerce net sales represented 19.9 per cent of total net sales this year, down from 20.9 per cent last year, the company said in a media release.

Gross profit, including buying, distribution, and occupancy costs, was $24.3 million, or 21 per cent of net sales, consistent with $25.9 million, or 21 per cent of net sales, last year. Product margins improved by 130 basis points, primarily due to a lower markdown rate and improved initial markups.

Selling, general, and administrative expenses increased to $45.1 million, or 38.9 per cent of net sales, compared to $43.2 million, or 34.9 per cent of net sales, last year. The increase in expenses contributed to an operating loss of $20.8 million, or 17.9 per cent of net sales, compared to an operating loss of $17.3 million, or 14.0 per cent of net sales, last year.

Net loss for the first quarter was $19.6 million, or $0.65 net loss per share, compared to a net loss of $12 million, or $0.40 net loss per share, last year. On a non-GAAP basis, this year's net loss was $14.5 million, or $0.48 net loss per share.

"Our business continues to face many headwinds from the macro environment, but we believe we are making progress on improving our product margins and driving greater customer engagement through our marketing efforts," said Hezy Shaked, co-founder and interim president and chief executive officer. "While we expect it to remain difficult to improve our sales results in the near term, we believe the efforts we are making now will produce benefits in the future when the current environment improves."

Fibre2Fashion News Desk (DP)