Commenting on the Company's performance and liquidity, Eric M. Specter, Executive Vice President and Chief Financial Officer said, "Our liquidity remains at healthy levels, and we have shifted from a net debt position to a net cash position. During the first quarter, we generated free cash flow, and our cash position increased by $62.9 million compared to the end of the fourth quarter, primarily as a result of our improved operating results, strong inventory management, and improved sell-throughs of our Spring merchandise at each of our brands.
"We also monetized our sourcing office premises in Hong Kong. We recognized a gain on the sale of these premises of $5.2 million, and received cash proceeds of $7.5 million as a result of the sale. Our sourcing organization continues to operate in Hong Kong utilizing a leased facility."
Specter added, "While our comparable store inventories were up 4% on a cost basis at the end of the first quarter, our Spring inventories were down mid-single digits as we continue to manage inventories tightly. As a reminder, during the second quarter last year, we had excess breadth and depth of Spring merchandise, which led to increased promotional activity."
Romano concluded, "In summary, we are encouraged by our progress and improved first quarter financial results. However, we have a number of challenges to address, including generating additional traffic and continued optimization of our inventory mix, which are further complicated by the macro-economic headwinds. We recognize that the real measure of success will be consistent, improving performance. We remain committed to building a winning team to ensure we deliver great product at a compelling value to our customer and a growing investment for our shareholders, season after season."
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.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
