Right Start Narrows Losses in 2nd Quarter

Right Start Inc., the Westlake Village baby-care products concern, reported a narrower loss in its second quarter on a 12% drop in revenues.

For the quarter that ended Nov. 29, Right Start posted a $628,000 loss compared to a $1.4-million loss a year earlier. Sales in the latest quarter fell to $10.5 million, down from $11.8 million a year ago.

For the six months, the company’s loss narrowed to $594,000, down from a $1.4-million loss a year ago. Sales for the latest six months fell 22% to $20.5 million, down from $26.3 million last year.

Right Start is shifting its strategy from primarily selling its products through catalogs to relying more on retail store sales. The company opened five stores this fall in four states, and now has 16 stores nationwide.

For the six-month period, Right Start’s catalog sales fell by $10.1 million, but its retail sales increased by $4.1 million. The company plans to open five more stores by June 1, and may open as many as 20 more stores by the end of fiscal 1997.

In the second quarter the company also included a pretax charge of $430,000 for a planned relocation of its Westlake Village warehouse facility and for various consulting fees.

Because of the company’s ongoing expansion of retail stores, Right Start plans to raise $5 million through a shareholder rights common stock offering that it hopes to complete in April.