Planet Hollywood International Inc., the movie-themed restaurant operator, announced an unexpected loss in the third quarter.
Sales of both merchandise and refreshments continued to decline at its nearly 80 Planet Hollywood restaurants and nine sports-themed Official All Star Cafes, the company said. Revenue dropped 26 percent to $110.3 million from $149.6 million.The megastar-owned company (PHL) reported a third-quarter net loss of $10.1 million, or 9 cents per share, compared with last year's third-quarter earnings of $25.2 million, or 23 cents per share. The First Call's consensus estimate expectation was for earnings of 1 cent per share.
Shares of Planet Hollywood has plunged from its 52-week high of 16 9/16 a year ago.
A 13 percent decline in food and beverage sales combined with a 31 percent decline in merchandise sales hit comparable store sales hard. The company blamed the decline in merchandise sales on a reduction in inventories and its failure to introduce a new product during the spring/summer season.
Written By Lisa J. Ulmer