Martin Lawrence Galleries Post $1.9-Million Loss

Martin Lawrence Limited Editions Inc., a Van Nuys operator of shopping-mall art galleries, said it lost $1.86 million in the third quarter ended Sept. 30, compared to an $863,000 profit for the same period a year ago.

Third-quarter revenues dropped 53% to $5.8 million from $12.4 million a year earlier, the company said.

For the nine months ended Sept. 30, Martin Lawrence lost $5.6 million on revenue of $18.7 million, compared to net income of $3.4 million on revenue of $37.4 million a year earlier. Same-store retail sales (excluding newly opened stores) fell 32% in the latest quarter compared to the year-earlier period.

The company blamed the losses on the recession and continued weakness in the fine-arts market. Also, supplies of graphics by artist Hiro Yamagata, who last year accounted for nearly half of Martin Lawrence’s sales, slumped after the company in January sued the artist over alleged breach of contract. The case remains in litigation.

The third-quarter loss also reflects the costs of closing one gallery, Martin Lawrence said. The company said it is considering closing additional galleries to lower overhead.