Carter Hawley Hale Loses $13.9 Million in 1st Quarter

Carter Hawley Hale Stores Inc. reported on Wednesday a first-quarter loss of $13.9 million stemming partly from the damage and business disruption its stores suffered in the Bay Area Quake.

The Los Angeles company, parent of the Broadway department stores, also attributed part of its loss to interest payments it is making due to its reorganization in 1987.

A year ago, Carter Hawley posted quarterly earnings of $11.3 million. That profit, however, mainly reflected a one-time credit of $15.3 million from an accounting adjustment for tax law changes.

Overall sales for the 13-week period that ended Oct. 28 totaled $658.8 million, up 3.5%. Excluding the operations of the Emporium chain in Northern California and new Carter Hawley stores that have been open less than a year, sales were up 4.7%.

Twelve Emporium stores were closed for a day or more by the Oct. 17 earthquake in Northern California, and the chain’s downtown Oakland store remains shut. On Wednesday, the company reported a charge of $10.5 million for quake-related expenses not covered by insurance, up slightly from an earlier estimated loss of $7 million to $10 million.

Carter Hawley officials cited some signs of improving performance. The company’s earnings before interest and taxes rose 24%, to $37.4 million, largely because of cost controls and extra revenue from finance charges. The net loss from operations narrowed to $3.4 million, from $4 million a year earlier.

Sarah Stack, an analyst with the brokerage firm Bateman Eichler, Hill Richards Inc., said the figures show that Carter Hawley is operating more efficiently. She added, however, that the company’s slow sales growth reflected a widespread slowdown in consumer spending.

In trading on the New York Stock Exchange on Wednesday, Carter Hawley’s stock closed at $8.375, up 12.5 cents.