Carter Hawley Blames Earthquake for Increase in First-Quarter Loss : Retail: Owner of Broadway department stores says the $18-million deficit was aggravated by the closure of four outlets.

Carter Hawley Hale Stores said its first-quarter loss expanded from last year’s because of sales declines associated with the temporary closing of four earthquake-damaged stores.

The Los Angeles-based retailer said its loss for the quarter ended April 30 was $18 million, compared to a loss of $10.4 million for the same period a year ago.

The company--operator of 83 stores under the names the Broadway, Emporium and Weinstocks--said overall sales declined 2.6% to $431.1 million from $442.5 million during the year-ago period. However, same-store sales--revenue from stores open for the past year--rose 4.7% during the quarter.

The reaction of industry analysts was mixed.

“Performance-wise, the company is at or above its recovery plan pace,” said Thomas Friedberg, an analyst at Genesis Merchant Group in San Francisco. “The same-store sales are quite encouraging, and the bottom line would have been stronger if not for closed stores.”

However, some analysts said the loss was greater than expected.

“It was a disappointing performance even if you consider the mitigating factor of store closings,” said Kurt Barnard, an economist and head of New York-based Barnard’s Retail Consulting Group.

Carter Hawley said the decrease in sales was due to an interruption caused by the Jan. 17 Northridge earthquake, which forced the retailer to close and repair its stores in Sherman Oaks, Canoga Park, Northridge and Panorama City.

The Panorama City store reopened May 21, but the other three stores remain closed. At the Northridge site, Carter Hawley is operating its Home Dome store, a 36,000-square-foot tent stocked primarily with home merchandise, until the store reopens.

The company said sales of men’s clothing, cosmetics and goods for the home improved during the period. On the other hand, demand for women’s apparel continues to be lackluster, said David Dworkin, Carter Hawley’s president and chief executive.

“On balance,” Dworkin said, “given the difficult economic climate and extraordinary circumstances with which we had to contend during the period, we are pleased with our performance and are optimistic in our ability to achieve substantial gains this year over 1993.”

Carter Hawley, which emerged from Chapter 11 bankruptcy protection in October, 1992, is trying to revive its business through management and marketing changes. The task is complicated by the flagging California economy and weak demand nationwide for women’s apparel, Barnard said.

“Dworkin is trying to make changes and he is doing it with gusto and skill, but he has a very difficult task ahead,” Barnard said.

Carter Hawley shares fell 50 cents Friday to $9.75 on the New York Stock Exchange.