Demand for Tommy Bahama product remains strong in Q2
03 Sep '10
5 min read
Ben Sherman reported an operating loss of $0.6 million in the second quarter of fiscal 2010 compared to an operating loss of $6.3 million in the second quarter of fiscal 2009. The dramatic increase in operating performance for Ben Sherman was due to improved gross margins, reduced SG&A and higher royalty income. The second quarter of fiscal 2009 also included $1.4 million of restructuring charges related to Ben Sherman's exit from and subsequent licensing of its footwear and kids' businesses and other streamlining initiatives.
Net sales for Lanier Clothes were $22.7 million in the second quarter of fiscal 2010 compared to $25.2 million in the second quarter of fiscal 2009. Most of the decline was attributable to underperforming businesses that the Company has exited. Operating income in the second quarter of fiscal 2010 was $2.8 million compared to an operating income of $2.7 million in the second quarter of fiscal 2009. Gross margins improved due to branded sales representing a greater proportion of Lanier Clothes' sales in the second quarter of fiscal 2010 and close-out sales associated with exited businesses included in the prior year.
Oxford Apparel reported net sales of $45.6 million for the second quarter of fiscal 2010 compared to $49.5 million in the second quarter of fiscal 2009. Last year's sales included $6.2 million of sales from businesses Oxford Apparel has exited. Operating income for Oxford Apparel was $3.4 million for the second quarter of fiscal 2010 compared to $4.1 million in the second quarter of fiscal 2009. The decrease in operating income was primarily due to decreased sales and increased SG&A, which were partially offset by higher gross margins.
Corporate and Other reported an operating loss of $4.4 million for the second quarter of fiscal 2010 compared to an operating loss of $7.6 million in the second quarter of fiscal 2009. The decrease in the operating loss was primarily due to LIFO accounting charges of $1.0 million in the second quarter of fiscal 2010 compared to $4.0 million in the second quarter of fiscal 2009.