Strong fourth quarter gross margin of 50.4% - PPLB
31 Mar '10
5 min read
• In December 2009, the Company signed a binding term sheet for a new multi-year licensing agreement with Viva International Group to design, produce and globally distribute William Rast Eyewear and William Rast Racing Eyewear focusing on styles for both the premium and sportswear categories for men and women. Viva is a worldwide leading eyewear company, representing premium and luxury brands including, GUESS, SKECHERS®, Tommy Hilfiger, Escada and Ermenegildo Zegna. The William Rast branded eyewear collections, which will include sunglasses and prescription eyewear, will debut in 2011 and will be available in William Rast's branded stores and in upscale department stores and specialty retailers worldwide. • During the fourth quarter, the Company launched its retail expansion plan for its William Rast brand, with the opening of two new full-price retail stores in Los Angeles and San Jose, and an outlet store in Cabazon, California. • The Company anticipates opening a new J.Lindeberg retail store at Aventura Mall in Miami in April 2010, building on its retail stores in Los Angeles' Beverly Center and in New York's SoHo area. • Professional golfer Camilo Villegas, sponsor of the Company's J.Lindeberg brand, won his third and most convincing victory on the PGA Tour during the Honda Classic at the PGA National Resort and Spa in Florida in March, 2010. He was wearing J.Lindeberg branded apparel throughout the event.
Three Months Ended December 31, 2009
Net sales for the fourth quarter of 2009 were $7.1 million compared with net sales of $7.5 million for the fourth quarter of 2008. The slight decrease in net sales was primarily due to a decrease in sales of the Company's People's Liberation products relating to our pending litigation with Charlotte Russe. Pursuant to the Company's exclusive distribution agreement with Charlotte Russe, the Company sold People's Liberation brand products to Charlotte Russe from June 2009 until the commencement of litigation in October 2009. The decrease in net sales was offset by increased wholesale and retail sales of the Company's J.Lindeberg brand.
Mr. Dyne continued, “We were extremely pleased to have delivered strong sales for the fourth quarter of 2009 and to finish the year on a strong note. Looking ahead, we are very enthusiastic about our recently announced business initiatives, including the launch of our new eyewear licensing agreement for William Rast. We are working diligently to complete a portfolio of licensing opportunities in fragrance, footwear and accessories to continue our expansion with complementary products. In addition, we anticipate the opening of a new J.Lindeberg Florida retail store in April 2010 at Aventura Mall in Miami, which will showcase our commitment to the brand and its growing consumer awareness and acceptance. These recent initiatives offer significant growth opportunities and we are confident about the long term growth prospects for our company.”
Total operating expenses for the fourth quarter of 2009 decreased approximately 26% to $4.4 million, compared to $6.0 million a year ago. The improvement was driven primarily by decreased design and sample costs related to the Company's restructured design services agreement and decreased promotion and marketing costs.
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