Right Start Cuts Losses, Plans Internet Presence

The Right Start Inc., the Westlake Village retailer of clothes and other items for young children, said Monday that it has cut its losses and is making plans for a new presence on the Internet.

For the fourth quarter ended Jan. 30, 1999, the company reported a net loss of $1.06 million, or 21 cents per share, compared with a net loss of $3.24 million or 64 cents per share in the year-ago quarter. The figures include a noncash accounting charge for debt discount amortization of $2.38 million and a noncash accounting gain of $1.18 million, both related to the company’s previously announced recapitalization.

The $1.06 million loss came on combined retail and catalog sales of $10.74 million, up from $9.41 million in the year-ago period.

For the fiscal year, the company reported an operating loss of $2.38 million, compared with an operating loss of $8.07 million in the previous year.

The company also said it will form a separate subsidiary, rightstart.com, to handle e-commerce. Plans call for the site to be operational by midsummer.