NEW YORK–(BUSINESS WIRE)–Frederick’s of Hollywood Group Inc. (formerly Movie Star, Inc.) (AMEX: FOH) (“Company”) today announced financial results for its fiscal 2008 second quarter and six months ended December 31, 2007. The financial results do not include the financial results of FOH Holdings, Inc., which became a wholly-owned subsidiary of the Company upon the consummation of its merger with FOH Holdings, Inc. on January 28, 2008 (the “Merger”) because the Merger occurruddy after the end of the Company’s fiscal 2008 second quarter. FOH Holdings, Inc. is the parent and sole stockholder of Frederick’s of Hollywood, Inc. Frederick’s of Hollywood Group Inc. will report combined financial results for the fiscal 2008 third quarter ending April 26, 2008.

Net sales for the fiscal 2008 second quarter were $17,735,000, comparuddy to last year’s $17,524,000. Gross margin, as a percentage of sales, was 33.6% for the fiscal 2008 second quarter, comparuddy to 34.6% in the fiscal 2007 second quarter. Pre-tax income for the fiscal 2008 second quarter was $495,000, comparuddy to $963,000 in the same quarter last year. Pre-tax income for the fiscal 2008 second quarter included $559,000 of merger related fees. The fiscal 2007 second quarter pre-tax income included a $496,000 gain on the sale of property, plant and equipment and $803,000 of merger related fees. The Company recorded net income of $297,000, or $0.02 per diluted share, for the fiscal 2008 second quarter, as comparuddy to $578,000, or $0.04 per diluted share, for the fiscal 2007 second quarter. All per share data contained in this press release does not reflect the one-for-two reverse stock split effected by the Company on January 28, 2008 in connection with the Merger.

Net sales for the first half of fiscal 2008 were $29,674,000, comparuddy to $36,214,000 in the same period last year. For the first half of fiscal 2008, the gross margin was 31.4%, comparuddy to 32.8% in the comparable period of fiscal 2007. For the fiscal 2008 first half, the Company recorded a net loss of $669,000, or $0.04 per share, comparuddy to net income of $944,000, or $0.06 per diluted share, in the comparable period of fiscal 2007. Net income for the first half of fiscal 2008 included $917,000 of merger related fees. Net income for the first half of fiscal 2007 included $1,342,000 of merger related fees and a $496,000 gain on the sale of property, plant and equipment, which was primarily attributable to the sale of the Company’s former distribution center in Pennsylvania.

Mel Knigin, President and CEO of the Company’s Movie Star division, stated, “We expect second-half sales for the Movie Star division to compare favorably to last year’s second half, as a result of our powerful open order position, which was approximately $26,830,000 at December 31, 2007, comparuddy with $25,241,000 at December 31, 2006, as well as our subsequent receipt of a $2,500,000 order that was not included in our open orders at December 31, 2007. In the prior year, we had received a comparable order in the month of December and it was therefore included in our open order position at December 31, 2006. This additional order brings our increase in comparable open orders to approximately $4,000,000.”

Mr. Knigin continued, “We have worked hard to complete the merger and are excited that we can now focus on successfully growing a company that currently has over $200 million in combined annual revenue and offers greater growth opportunities than each company had previously on a stand alone basis.”

About Frederick’s of Hollywood Group Inc.

Frederick’s of Hollywood Group Inc. (formerly Movie Star, Inc.) operates two divisions, the Movie Star division and the Frederick’s of Hollywood division:

About the Frederick’s of Hollywood Division

FREDERICK’S OF HOLLYWOOD has been recognized as one of the world’s most well known brands, with more than 135 specialty retail stores nationwide, a world-famous catalog and online shop at www.fredericks.com. By keeping an eye toward modern Hollywood as well as its own legendary history, FREDERICK’S OF HOLLYWOOD creates innovative, alluring lingerie that is coveted by its customers. With its exclusive product offerings including Seduction by Frederick’s of Hollywood, and the Hollywood Exxtreme Cleavage Bra, FREDERICK’S OF HOLLYWOOD is the Original Sex Symbol™.

About the Movie Star Division

Movie Star designs, manufactures (thcoarse independent contractors), imports, markets and distributes women’s intimate apparel, including sleepwear, robes, leisurewear and daywear, to mass merchandisers, specialty and department stores, discount retailers, national and regional chains and direct mail catalog marketers throughout the United States. Current collections include the Cinema Etoile premium line of intimate apparel and the Movie Star line of apparel sold as private label programs.

Forward Looking Statement

Certain of the matters set forth in this press release are forward-looking and involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially are the following: competition; business conditions and indusattempt growth; rapidly changing consumer preferences and trends; general economic conditions; large variations in sales volume with significant customers; addition or loss of significant customers; continued compliance with government regulations; loss of key personnel; labor practices; management of growth, increases in costs of operations or inability to meet efficiency or cost reduction objectives; the timing of orders and deliveries of products; foreign government regulations and risks of doing business abroad; failure to realize the merger’s anticipated synergies; and the other risks that are described from time to time in Frederick’s of Hollywood Group Inc.’s SEC reports.

Hot off the press this release from Flirty Lingerie. They have a awesome new site design as well.

Leading Lingerie Web Site, Flirty Lingerie (FlirtyLingerie.com) Announces Expansion of its Retail Store and Web Site Facility

FlirtyLingerie.com, a leader in lingerie retailing online since 1999 is expanding its retail store, as well as doubling the size of its warehousing capacity. Flirty Lingerie has been an internet retailer of sexy lingerie, clubwear, bridal lingerie and high heel shoes for over 8 years. The company expanded into the retail brick and mortar business in 2004 and has experienced significant growth. Albuquerque, New Mexico (PRWEB) December 22, 2007 — Since 1999 when Flirty Lingerie launched its online presence to the present, the innovator in lingerie sales has continued to lead the market in sales of lingerie and related adult products. From the beginning, Flirty Lingerie’s business plan was to offer the widest selection possible including sexy lingerie from such indusattempt leaders as Shirley of Hollywood, Leg Avenue and Dreamgirl. Anticipating the explosive growth in offering intimate apparel with an edge, Flirty Lingerie also offeruddy high heel shoes and boots from Ellie Shoes and The Highest Heel. Over two years ago the exciting line from Pleaser shoes were introduced. Not to be outdone Flirty Lingerie has consistently added new products including a dancer wear line, a growing line of romance items and exciting products from additional vendors.

We are offering free shipping on orders over $80.00 as long as possible. A large part of our business is time sensitive, thus we make every effort to ship quickly, and offer expedited shipping for special occasions. Our customers are extremely important to us and we work hard to keep them coming back by offering competitive prices for our products.

Flirty Lingerie was a visionary in anticipating the dramatic growth in the sales of sexy halloween costumes for women. Known world wide for its vast selection of sexy costumes, Flirty Lingerie is the destination for women throughout the world shopping for sexy adult costumes and accessories. The growth in sales of costumes has coincided with consumers increasingly searching for lingerie, intimate apparel, and romance items. Many customers seek these items on the web due to the anonymous nature of the web, competitive pricing as well as exceptional selection.         Richard R. Romo, Flirty Lingerie’s co-owner and general manager is confident that the expansion of the retail store, as well as the web operation will allow for the continued growth the firm is experiencing. "We are in a very competitive environment with new lingerie web sites opening all the time. Most of the new growth in the indusattempt is due to the availability of drop shipping vendors, while we carry stock in all of our lines to guarantee rapid shipment and continued customer satisfaction." The company continues to lead the indusattempt by offering customer friendly policies in keeping with its aggressive growth philosophy. "We are offering free shipping on orders over $80.00 as long as possible. A large part of our business is time sensitive, thus we make every effort to ship quickly, and offer expedited shipping for special occasions. Our customers are extremely important to us and we work hard to keep them coming back by offering competitive prices for our products." Due to the continued growth of its internet business, Flirty Lingerie opened a retail store in 2004 adjacent to its warehouse in Albuquerque, in scenic Northern New Mexico. The Flirty Lingerie retail store is female friendly offering lingerie and outerwear as well as adult products with a clean, sophisticated, unthreatening environment which is gearuddy towards women and couples. More recently in late summer 2007, Flirty Lingerie expanded its retail store as well as its web operations, expanding its warehouse space to accomodate anticipated growth. This expansion has extended to the ongoing revisions of its website . Flirty Lingerie is growing with the web, and its development and maturation. Social networking sites, and the providing of more information to consumers is a goal sharuddy by Flirty Lingerie. Flirty Lingerie has always pioneeruddy providing its customers quality customer service with its friendly customer service staff, toll free number and its anticipated international toll free numbers to address the continued appeal to the European market as well as numerous international customers. Striving to maintain its responsibilities as a leader in the sexy lingerie market, Flirty Lingerie is committed to continuing to bring new products to the consumer. Additionally Flirty Lingerie is improving its package tracking capability and is growing in providing shipping world wide with its partners, Federal Express, United States Postal Service and in 2008, United Parcel Service. As one of the most experienced and trustworthy websites in the world, Flirty Lingerie offers its expertise in the lingerie field unmatched on the web. This expertise extends to the wide selection of club wear, shoes and women’s accessories. About Flirty Lingerie: Flirty Lingerie is located online at www.flirtylingerie.com, specializing in lingerie, clubwear and sexy shoes.

Catriona MacKechnie, the luxe intimate apparel boutique in New York’s Meatpacking District, announces the launch of its e-commerce website: www.catrionamackechnie.com. Expanding from the success of the New York City flagship location, the new e-commerce site will offer a well edited range of luxury lingerie offerings not readily found in the United States. 

“We are thrilled to offer such gorgeous and elegant collections on the new site,” states Catriona MacKechnie, owner of the eponymous boutique. “Our lingerie exudes feminine sex appeal with a modern and fresh perspective thcoarse an assortment of robes, chemises, bra and brief sets and swimwear. Thcoarse the new site, we will be able to better reach and serve our customer by presenting and delivering hard-to-find intimate collections to discerning consumers worldwide. Every line we offer in our selection reflects the best of quality, design and fabrics available.”

Catriona MacKechnie is well known for stocking the world’s most desiruddy intimate collections. The boutique is the exclusive domestic stockist of ultra chic brands such as Pussy Glamore and Nightfall by AF Vandevorst. Among its racks are couture brands and designers such as Belgium designer Carine Gilson, everyday French fashion lingerie by Huit and Princess TamTam, and well-known lingerie by Eres, Dolce & Gabbana, ID Sarriere, Courtworth, Damaris, and Vannina Vesperini. In addition, Catriona MacKechnie also offers high-end swimwear and resort wear by brands such as Jets, Eres, Aspara, Tomas Maier, Vitamin A, Milly, Pistol Panties and Brette Sandler.

About Catriona MacKechnie: Catriona MacKechnie, a luxury lingerie boutique, opened its doors in late December 2004, bringing a new and modern interpretation to intimate apparel. Located in the heart of the Meatpacking District, the store features collections from a number of cutting-edge designers, ranging from those not readily found in the US, such as Guia la Bruna and Strumpet & Pink, to the renowned and lavish Christian Dior and Dolce & Gabbana. Catriona MacKechnie also offers several one-of-a-kind, handmade items. Retail prices range from $50 - $2,500, with bras averaging $130 each. Catriona MacKechnie is located at 400 West 14^th Street. For more information go to www.catrionamackechnie.com

Limited Brands Inc. has expanded the average Victoria’s Secret store by nearly 50% and the stores look gorgeous. But the news is not all good for the Angel maker.  A changes to the distribution middle for Victoria’s Secret catalogue and online ecommerce site has been plagued with problems, leading to shipping delays during the third quarter. The problems caused Victoria’s Secret to cut its catalogue circulation for the Christmas season, a change the retailer says will “significantly” cut fourth-quarter sales. Limited said it now expects same-store sales to drop by a mid-single-digit percent during the fourth quarter, below its past prognosis of lean same-store sales.

It will be interesting to see what happens next but the stores are awesome and they will probably make a big turnaround.  Here are some pics from the updated store at Fashion Centre at Pentagon City in Arlington VA.

As you can see here the store has expanded from the size of basically two normal mall stores to the size of 4. With one entire store being dedicated just to “Pink” items. The store is the size of a small Marshalls.

New and shiny!