March 25, 2014 / 9:37 PM / 4 years ago

Body Central raises doubt about continuing as going concern

(Reuters) - Women’s apparel retailer Body Central Corp BODY.O raised doubt about its ability to continue as a going concern after it reported its third straight quarterly loss and negative cash flows from operations.

The company’s shares fell as much as 22 percent to $1.27 in extended trading.

The company said it was working on a better assortment in its stores to win back shoppers in their mid 20’s to mid 30‘s.

Body Central also said it would expand its credit facility, cut jobs and defer certain capital projects to improve liquidity.

“(The actions to increase liquidity) should be adequate to finance our working capital needs through 2014 if we are successful in executing our business plan,” Chief Executive Brian Woolf said on a conference call with analysts.

For the fourth quarter, Body Central reported a 26 percent drop in comparable store sales, its eighth straight quarterly decline.

The company said net revenue fell 18.3 percent to $66.2 million in the quarter ended December 28. Analysts on average were expecting revenue of $72.7 million, according to Thomson Reuters I/B/E/S.

Body Central’s net loss narrowed to $23.3 million, or $1.42 per share, from $42.3 million, or $2.59 per share, a year earlier. Excluding items, the company posted a loss of 74 cents per share.

Body Central’s shares have fallen about 59 percent to Tuesday’s close of $1.62 on the Nasdaq.

Reporting by Maria Ajit Thomas in Bangalore; Editing by Don Sebastian

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